It has been the standout performer of Australia’s Big Four banks in the past year
Published Wed, Feb 11, 2026 · 04:57 PM
[SYDNEY] Commonwealth Bank of Australia (CBA) shares surged by as much as 8.4 per cent on Wednesday (Feb 11), after the country’s largest lender reported record first-half cash earnings on the back of market share gains in home loans, business loans and deposits.
The bank’s ability to further entrench its scale advantage over its Big Four peers offset a small decline in margins – due to competition and lower income from its treasury and markets divisions.
CBA reported a record cash net profit after tax of A$5.5 billion (S$4.9 billion) for the six months ended Dec 31, higher than A$5.1 billion for the corresponding year-ago period, and ahead of the Visible Alpha consensus estimate of A$5.2 billion.
The share price performance was CBA’s biggest intra-day gain since late March 2020, and far outpaced the 1.6 per cent rise in the benchmark S&P/ASX200 index on Wednesday.
“The main highlight from this result from CBA has been the growth in the business bank and operational excellence across mortgages in a higher competition environment,” said Michael Haynes, investment analyst at Atlas Funds Management, which owns CBA shares.
CBA, considered one of the most expensive banks in the world, had been the standout performer of Australia’s Big Four banks in the past year.
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But its shares are down 17 per cent since reaching a record in June 2025, as the high valuation made resources stocks look more attractive for some investors.
CBA CEO Matt Comyn said on Wednesday that Australia’s economy had remained robust, driven by better-than-expected consumer demand, in addition to rising investment in artificial intelligence and energy infrastructure.
“Household consumption has risen, including across discretionary categories. Supply-side constraints mean that the economy is struggling to meet this increased demand,” he added.
But Comyn warned that Australia’s interest rates, which rose last week for the first time in two years, will remain elevated while inflation stays high. Financial markets expect at least one more increase in rates in 2026.
For the first half, CBA reported a 3.7 per cent increase in home lending volumes, while business lending volumes grew 6 per cent, outpacing system growth on both counts.
CBA has been rapidly gaining business-banking market share, taking ground off its rivals such as the National Australia Bank and ANZ Group.
Household deposits rose by 7.5 per cent, also above the average of the major banks. These gains helped CBA retain its lead in home lending, maintaining a 25.4 per cent share of the market.
The bank declared an interim dividend of A$2.35 a share, higher than last year’s A$2.25 and beating the Visible Alpha consensus of A$2.31.
However, CBA’s net interest margin, the difference between lending and deposit rates and a key measure of profitability, fell by four basis points to 2.04 per cent, from the year-ago period.
That reflected intensifying competition among lenders to attract borrowers in a low interest-rate environment during the July-to-December period.
Operating expenses during the first half jumped by 5 per cent to A$6.7 billion – 10 per cent higher than the previous period – with around A$1.2 billion spent on a revamp of its technology infrastructure to enhance its generative AI capabilities. REUTERS
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