The sheer size of the capital returns that Commonwealth Bank is showering on its investors - $4 billion in dividends and a bigger than expected $6 billion share buyback - might have you believe that the Australian banking sector’s glory days are back.

Indeed, CBA shares hit a record high of $107.82 on Wednesday morning shortly after the release of its full-year results; the stock is up almost 90 per cent since the ASX hit its pandemic nadir in March 2020.