Highlights

  • CBA net profit after tax reaches AUD 5.41 billion, with pre-provision profit up 5% and interim dividend at AUD 2.35 per share.
  • Loan impairments remain low at AUD 319 million, home loan arrears decrease, and liquidity and capital ratios stay above regulatory minimums.
  • Brokers maintain cautious outlook: Macquarie underperform (AUD 120), Jefferies underperform (AUD 139.60) despite share price gains.

Commonwealth Bank of Australia (ASX:CBA) saw its shares climb 7.7% to AUD 170.96 on 11 February 2026 following the release of its half-year results for FY26. Despite positive earnings and a fully franked interim dividend, broker sentiment remains cautious, with Macquarie, and Jefferies maintaining underperform ratings. Analysts cited valuation and margin pressures as reasons for their stance.

CBA Delivers Strong 1H26 Earnings

CBA reported a net profit after tax (NPAT) of AUD 5.41 billion for the six months ending 31 December 2025, a 6% increase on the prior corresponding period. Pre-provision profit grew 5% to AUD 8.13 billion, reflecting performance across core banking operations.

The bank declared a fully franked interim dividend of AUD 2.35 per share, representing a payout ratio of approximately 74% of cash NPAT. Net interest margins remained broadly stable at 2.04%, while operating expenses increased 5% due to inflation and ongoing technology investments.

Operational Highlights and Customer Focus

CBA continued investing in technology and frontline services to enhance customer experiences. Over 63,000 tailored payment arrangements were provided for customers in need, and more than 79,000 homes were supported through lending. The bank also focused on cyber protection, deploying over 2,900 AI bots to detect and prevent fraud and scams, and contributing intelligence to the national Anti-Scams Intelligence Loop.

Credit quality showed improvement, with loan impairment expenses flat at AUD 319 million. Home loan arrears fell by 7 basis points, and 87% of home loan customers were ahead on repayments. Deposit funding remained strong at 79% of total funding, while liquidity and capital ratios comfortably exceeded regulatory requirements, with a CET1 ratio of 12.3% and NSFR at 117%.

Broker Ratings Remain Cautious

Despite the positive financial performance, broker sentiment is subdued:

  • As per Refinitiv data, consensus rating stands at Sell with a target price of AUD 121.87.
  • Macquarie has an Underperform rating with a target of AUD 120.
  • Jefferies also issued an Underperform rating with a target of AUD 139.60.

CBA’s half-year results demonstrate robust earnings, improved credit quality, and a shareholder-friendly dividend. While the share price responded positively, broker recommendations remain cautious, reflecting broader market considerations. The bank appears positioned to continue supporting customers, investing in technology, and maintaining capital strength through the remainder of FY26.

Frequently Asked Questions (FAQs)

  1. What was CBA’s interim dividend for 1H26?
    CBA declared a fully franked interim dividend of AUD 2.35 per share.
  2. How did CBA’s NPAT perform in the first half?
    Net profit after tax reached AUD 5.41 billion, up 6% on the prior corresponding period.
  3. What ratings did brokers assign to CBA after 1H26 results?
    Consensis rated CBA as sell (AUD 121.87 target), while Macquarie and Jefferies issued underperform ratings (AUD 120 and AUD 139.60 targets, respectively).