The Commonwealth Bank of Australia (ASX: CBA) share price is under the spotlight after reporting its FY26 third-quarter update.
CBA is the largest bank in Australia and New Zealand.
Commonwealth Bank FY26 third quarter
The bank reported that it generated statutory net profit of $2.6 billion for the three months to 31 March 2026.
Cash net profit came to $2.7 billion, a decrease of 1% compared to the first half of FY26‘s quarterly average, but up 4% on the prior corresponding period.
CBA revealed that operating income was flat during the quarter, with lending and deposit growth offsetting the impact of two fewer days in the quarter.
The ASX bank share said that business lending increased by 12.5% ($21.6 billion), 1.2x faster than the overall loan system.
Home lending increased by 7.1% ($41.2 billion), the same speed as the overall loan system.
Household deposits grew by 9.1% ($38.3 billion), 1.1x faster than the overall banking system.
Operating expenses were up 1%, excluding restructuring and notable items, primarily due to higher cloud computing volumes, software licensing and investment in AI capabilities, partly offset by two fewer days in the quarter and ongoing productivity initiatives.
Loan profitability
The bank noted that its underlying net interest margin (NIM) – how much profit a bank makes on its lending – was broadly stable, excluding “non-recurring tailwinds”.
Commonwealth Bank revealed that the loan impairment expense for the quarter was $316 million, with higher collective provisions reflecting heightened geopolitical and macroeconomic uncertainty.
CBA said that its underlying portfolio credit quality “remains sound”.
Home loan and credit card 90+ day arrears stayed flat at just under 0.7%, however personal loan arrears jumped to 1.71%.
Outlook for the CBA share price
Commonwealth Bank said that it’s closely monitoring the impacts of the Middle East conflict and the broader macroeconomic environment.
But, the Australian economic also continues to demonstrate resilience, but supply chain disruptions, higher prices and interest rates are expected to weigh on household spending and business activity.
CBA said it will continue to adjust its settings as appropriate and remain focused on executing the strategy to “build a brighter future for all”.
Will CBA shares be a good long-term investment from here? It has usually managed to answer that question with long-term growth. It’ll be interesting to see how the Australian Federal Budget changes impact demand for (investor) loans.
I’d be satisfied with this update if I were a shareholder, but I think new investors may want to look at other ASX dividend shares for ideas with higher dividend yields.
