Commonwealth Bank's profit is expected to have hit a record of at least $4.5 billion in the first half of the financial year, as it rides the wave of a booming housing market.
The country's biggest lender is also expected to increase its interim dividend to shareholders, but analysts are questioning whether either factor is enough to justify CBA's soaring share price.
The bank's half results are out on Wednesday and the consensus forecast among analysts is for an improvement of around $250 million in cash profit, to $4.54 billion.
The key driver of that growth is again expected to be CBA's retail operations, which now account for around half of its earnings, as low interest rates fuel increased home lending.
The massive profit will grab headlines, and shareholders will welcome a higher dividend, which is expected to rise nine per cent to $2.00.
After a rapid ascent in CBA's share price since 2012, the bank has overtaken BHP to be the largest on the local share market, with a market capitalisation of more than $150 billion.
Its shares last week hit a record of $93.96, which values it at more than 16 times the $9 billion-plus it's expected to earn this financial year.
That's on the pricey side for a company with expected earnings growth of around six per cent, but what really has analysts scratching their heads is how that share price compares to the value of the bank's assets.
CBA's market value is well over double the value of its assets.
On that measure it is the most expensive bank in the world, but according to IG market strategist Evan Lucas that's probably not going to change after Wednesday.
"Anybody looking at the fundamentals would tell you they are overvalued, but they've been saying that for three years," he told AAP.
CBA shares, like those of its rivals among the big four, and Telstra, have been key beneficiaries of record low interest rates, Mr Lucas said.
Based on current prices and expected dividends this year, CBA is currently yielding around 4.5 per cent on a shareholder's investment, much better than the return on offer from term deposits.
"You certainly aren't getting any love from bonds or term deposits so people are struggling for ideas of where to put their funds, and that's why something like CBA is getting a lot of love," he said.
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