Highlights

  • CBA reports unaudited cash NPAT of approximately AUD 2.6 billion for the September 2025 quarter, up 1% on the 2H25 quarterly average.
  • Operating income increased 3%, supported by lending and deposit growth, while loan impairment expense was AUD 220 million.
  • CET1 ratio at 11.8%, with AUD 16 billion of new long-term funding issued this financial year.

Commonwealth Bank of Australia (ASX:CBA) has reported unaudited cash net profit after tax (NPAT) of approximately AUD 2.6 billion for the first quarter of FY26, up 1% on the average quarterly performance of the second half of FY25. Operating income rose 3% during the quarter, driven by growth in lending, deposits, and non-interest income, while overall portfolio credit quality remained stable.

CBA shares were trading 4.95% lower at AUD 166.27 during the session on 11 November 2025.

Operating Performance and Income Growth

The bank’s operating income was up 3% compared with the previous quarter, supported by higher net interest income and non-interest income, as well as 1.5 additional trading days in the quarter.

Net interest income rose 3%, underpinned by growth in lending and deposit volumes, offset partly by lower headline margins due to the mix of increased liquid assets and institutional repo activity. Liquid assets grew by AUD 12 billion, primarily from AUD 10 billion growth in institutional deposits, while repos increased by AUD 5 billion. Excluding these factors, underlying margin was slightly lower due to competition and ongoing deposit switching.

Lending and Deposit Growth

Home lending increased by AUD 9.3 billion during the quarter, growing at 1.1 times system levels, with proprietary channels representing 68% of new flows. Household deposits rose AUD 17.8 billion, outpacing system growth at 1.2 times system, supported by new-to-bank retail account openings.

Business banking also recorded growth, with business transaction accounts up 7% year-on-year to approximately 1.36 million accounts. Business lending continued to expand across diversified sectors. Other operating income rose 3%, supported by higher markets income and volume-driven fee growth.

Operating expenses, excluding restructuring and notable items, increased 4%, reflecting wage and IT vendor inflation, additional trading days, and ongoing investment in productivity initiatives.

Credit Quality and Provisions

Loan impairment expense for the quarter was AUD 220 million, or 9 basis points of average gross loans and acceptances. Consumer arrears improved, aided by lower inflation and interest rates. Home loan arrears fell to 0.66%, down 4 basis points, while credit card arrears decreased to 0.67%.

Corporate troublesome and non-performing exposures (TNPE) were slightly lower at AUD 6.2 billion, representing 0.94% of total committed exposure. Total credit provisions were steady at AUD 6.4 billion, maintaining a provision coverage ratio of 1.60% amid ongoing global macroeconomic and geopolitical uncertainties.

Funding and Capital Position

CBA maintained conservative funding and liquidity levels. Customer deposits accounted for 79% of total funding, while the proportion of short-term wholesale funding remained below historical averages.

The bank issued AUD 16 billion of new long-term wholesale funding year-to-date, with long-term instruments representing 69% of total wholesale funding and an average tenor of 5.2 years. The Liquidity Coverage Ratio (LCR) stood at 133%, and the Net Stable Funding Ratio (NSFR) at 116%, both above regulatory minimums.

CBA’s Common Equity Tier 1 (CET1) ratio was 11.8%, reflecting organic capital generation before the AUD 4.4 billion dividend payment to shareholders.