SYDNEY — Commonwealth Bank of Australia shares plunged more than 10 percent on Wednesday, closing at $153.67 and erasing roughly $25 billion in market value in one of the most dramatic single-day drops in recent ASX history. The sell-off followed a quarterly trading update that fell short of elevated expectations and fresh concerns over the federal budget's property tax changes, highlighting vulnerabilities in Australia's largest lender amid a challenging economic and policy backdrop.

The 10.43 percent decline dragged the broader financial sector lower and contributed to the S&P/ASX 200 index falling 0.52 percent to 8,625.3 points. Investors punished CBA despite the bank reporting modest profit growth, signaling deep unease over margins, provisioning and long-term lending growth. Here are the five primary reasons behind the sharp reversal.

1. Quarterly Profit Miss and Higher Bad Debt Provisions

CBA reported an unaudited cash profit of approximately $2.7 billion for the March quarter, up 4 percent year-over-year but missing analyst forecasts by around 2 percent. Operating income remained relatively flat compared to the first-half quarterly average, with higher net interest income offset by weaker non-interest income.

More concerning was a $316 million loan impairment charge, including a $200 million top-up to collective provisions. The bank cited heightened geopolitical risks in the Middle East and a more cautious macroeconomic outlook. While credit quality remains sound overall, with many home loan........

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