Commonwealth Bank Shares Rise After CBA Reports Increased Profits Amidst Strong Home Lending Growth

By Alex Sterling
Everythiiing.com | February 11, 2026

Shares in Australia's largest financial institution, Commonwealth Bank (CBA), experienced a notable uptick in early trading following the release of its robust first-half financial results. The banking giant announced a significant 5 per cent surge in net profit, reaching an impressive $5.367 billion, primarily propelled by substantial increases in both home lending volumes and customer deposits.

Profitability Boosted by Lending and Deposit Growth

The strong financial performance underscores a healthy demand for home loans and a growing base of customer deposits, key indicators of economic activity and consumer confidence. This growth has translated directly into increased profitability for the bank. Shareholders are set to benefit from this success, with an interim dividend of $2.35 per share declared, a 4 per cent increase from the previous year, and fully franked.

Beyond the statutory net profit, CBA's cash profit – a measure favoured by the banking sector that strips out non-recurring items – also saw a healthy increase. It rose by 6 per cent to $5.45 billion, further solidifying the bank's strong operational performance during the period.

CEO Optimistic About Economic Outlook

Commonwealth Bank's Chief Executive Officer, Matt Comyn, expressed a positive outlook on Australia's economic prospects for 2026. In a statement to the Australian Securities Exchange (ASX), Mr. Comyn highlighted that economic growth has strengthened considerably in the first half of the financial year. This expansion, he noted, was driven by a dual rise in consumer demand and increased investment in crucial sectors like artificial intelligence (AI) and energy infrastructure.

However, Mr. Comyn also pointed to persistent "capacity constraints" within the economy. These supply-side limitations are hindering the economy's ability to fully meet the heightened demand. This imbalance, he explained, is contributing to inflation remaining above the Reserve Bank of Australia's target band for an extended period, consequently placing further upward pressure on interest rates.

"We will continue to seek to support our customers with financial resilience," Mr. Comyn assured, signalling the bank's commitment to navigating the evolving economic landscape alongside its clientele.

Mortgages, Business Lending, and Deposits All Show Strong Gains

The bank's success is clearly segmented across its core lending and deposit operations:

Home Lending Dominance

Commonwealth Bank reported a significant 3.7 per cent increase in its home lending volumes over the six-month period. This growth rate outpaced the broader banking system's expansion of 3.5 per cent, allowing CBA to maintain its strong position in the Australian mortgage market, holding approximately a quarter of the market share.

Robust Business Lending

The bank's business lending segment also performed exceptionally well, with volumes growing by 6 per cent in the half, again exceeding the system average. This indicates a healthy appetite for credit among Australian businesses, signalling confidence in future investment and expansion.

Surge in Household Deposits

On the deposit side, household deposit volumes saw a substantial increase of 7.5 per cent. CBA continues to be a primary destination for Australians' savings, holding a significant 27 per cent market share in this crucial area.

Net Interest Margins Face Pressure Amidst Rising Rates

Despite the overall positive profit performance, analysts noted a compression in Commonwealth Bank's net interest margins (NIM). The NIM, a key profitability metric representing the difference between interest earned on loans and interest paid on deposits, decreased by 4 basis points to 2.04 per cent.

The bank attributed this decline primarily to heightened competition within the home lending market and a reduction in Treasury and Markets income. These factors were partially offset by stronger earnings from other areas and various other contributing elements.

Speaking to ABC's Alicia Barry, Mr. Comyn emphasized CBA's "breadth of service" as a key differentiator that will enable the bank to maintain its leading market position, even in the face of increasing competition from emerging players and existing rivals.

The strong performance of Commonwealth Bank, particularly in home lending and deposit growth, demonstrates its resilience and strategic positioning within the Australian financial landscape. While challenges such as margin compression persist, the bank's robust profit figures and positive outlook suggest a continued trajectory of growth and shareholder value creation.