CBA Analysis: Q1 FY26 Trading Update

Published 12 Nov 2025 • 3 min • CBA

Event: Q1 FY26 Trading Update | Date: 2025-11-11 | Source: ASX Announcement

CBA Delivers $2.6bn Q1 Profit Despite NIM Headwinds

Commonwealth Bank of Australia released its Q1 FY26 trading update on November 11, 2025, reporting a cash net profit after tax of $2.6 billion, up 3% from the prior quarter on a cash basis. The result was driven by solid volume growth, with home lending expanding 1.1 times system growth to $9.3 billion and household deposits rising 1.2 times system to $17.8 billion, while business lending grew 10.4% year-on-year. Net interest margin (NIM) compressed to 2.00% excluding mix effects, reflecting competitive pressures in deposits and institutional business, though credit quality improved with home loan arrears declining 4 basis points to 0.66%. Operating expenses rose 4% to $3.7 billion due to wage inflation and technology investments, while CET1 ratio stood at 11.8% and liquidity metrics remained strong at 133% LCR. Management maintained a cautiously optimistic tone, noting resilience amid cost-of-living pressures and geopolitical uncertainty, with provisions held steady at $6.4 billion. (ASX Announcement)