{"id":472228,"date":"2026-02-11T06:05:12","date_gmt":"2026-02-11T06:05:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/472228\/"},"modified":"2026-02-11T06:05:12","modified_gmt":"2026-02-11T06:05:12","slug":"commonwealth-bank-shares-rise-after-cba-reports-increased-profits-as-it-lifts-home-lending-volumes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/472228\/","title":{"rendered":"Commonwealth Bank shares rise after CBA reports increased profits as it lifts home lending volumes"},"content":{"rendered":"

Shares in Australia’s biggest bank have risen in early trade after the Commonwealth Bank reported rising profits on the back of increased lending and deposit volumes.<\/p>\n

CBA’s net profit for the first half of the financial year rose 5 per cent to $5.367 billion.<\/p>\n

Shareholders will receive an interim dividend of of $2.35 per share, fully franked \u2014 up 4 per cent from a year ago.<\/p>\n

Cash profit, a measure preferred by the banks that excludes items they do not regard as “business as usual”, came in at $5.45 billion, up 6 per cent.<\/p>\n

CBA chief executive Matt Comyn said the bank was optimistic about the prospects for the economy.<\/p>\n

Capacity constraints explained<\/a><\/p>\n

It may sound boring, but “capacity constraints” are to blame for your higher mortgage repayments.<\/p>\n

“Economic growth strengthened during the half, driven by an increase in consumer demand and rising investment in AI and energy infrastructure,” Mr Comyn said in an ASX statement.<\/p>\n

“Supply-side constraints mean that the economy is struggling to meet this increased demand.<\/p>\n

“As a result, inflation is now expected to remain above the Reserve Bank’s target band for some time, placing further upward pressure on interest rates.<\/p>\n

“We will continue to seek to support our customers with financial resilience.”<\/p>\n

Markets live blog: Follow CBA and other share price moves, the latest reporting season news and analysis from our specialist reporters.<\/a><\/p>\n

Mortgages, business lending and deposits grow<\/p>\n

CBA reported a 3.7 per cent increase in its home lending volumes over the six months, compared to 3.5 per cent across the broader banking system.<\/p>\n

It retained about a quarter of Australia’s mortgage market.<\/p>\n

Its business lending volumes grew 6 per cent in the half, also ahead of system growth.<\/p>\n

Household deposit volumes were up 7.5 per cent, with CBA holding 27 per cent market share.<\/p>\n

\"a<\/p>\n

Increased lending for housing drove CBA’s profits to start the financial year. (ABC News: John Gunn)<\/p>\n

Net interest margins decline as rates rise<\/p>\n

Analysts at UBS said the profit result beat market estimates, as well as its own analysts’ forecasts, with business banking a stand-out, but net interest margins were compressed more than expected.<\/p>\n

CBA’s net interest margin (NIM) \u2014 which is the difference between the interest earned on the money it lends and the interest it pays out on deposits \u2014 decreased by 4 basis points to 2.04 per cent.<\/p>\n

The bank said it was “primarily due to competition in home lending and lower Treasury and Markets income”, partially offset by higher earnings elsewhere and other factors.<\/p>\n

Later on Wednesday, Mr Comyn told the ABC’s Alicia Barry that the CBA’s “breadth of service” would see it maintain its dominant position, despite competition brought by the likes of Macquarie and other banks.<\/p>\n

“It’s more about we offer a breadth of service and a customer proposition that’s unmatched, insofar as we serve all parts of the community, all parts of Australia,” he said.<\/p>\n

“Some of our competitors are very focused only on affluent customers living in metropolitan or major cities. It’s one of our strengths that we’re able to provide that diverse customer base across Australia, a full and comprehensive banking system.”<\/p>\n

Hear Alicia Barry’s full interview with Commonwealth Bank chief executive Matt Comyn on The Business tonight on ABC News Channel or anytime on iview.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares in Australia’s biggest bank have risen in early trade after the Commonwealth Bank reported rising profits on…\n","protected":false},"author":2,"featured_media":472229,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[256,64,63,9671,111815,99,21976,51494,96,49448,5626,180,1781],"class_list":{"0":"post-472228","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ai","9":"tag-au","10":"tag-australia","11":"tag-bank","12":"tag-big-four","13":"tag-business","14":"tag-cba","15":"tag-commbank","16":"tag-commonwealth-bank","17":"tag-home-loan","18":"tag-interest-rates","19":"tag-jobs","20":"tag-savings"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/472228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=472228"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/472228\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/472229"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=472228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=472228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=472228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}