CBA first quarter profit jumps despite home loan arrears hitting six-year high

• Australia’s biggest bank has reported a first quarter profit of $2.8 billion, up 8 per cent on the same period last year.
• The profit was driven by a sharp increase in business lending, up 13.6 per cent.
• Home loan applications plummeted by 16 per cent, and home loans in arrears rose to a six-year high of 0.80 per cent.

The Commonwealth Bank of Australia (CBA) has reported a lift in its first quarter profit despite home loan arrears hitting a six-year high.

Releasing its results to the market this morning, CBA reported a Q1 profit of $2.8 billion, up 8 per cent on the corresponding period last year.

Profit was flat when compared to the second half FY26 quarterly average.

A huge jump in business lending, up 13.6 per cent, helped drive income for the bank, while operating expenses increased 3 per cent due to wage and IT vendor inflation.

Despite the lift, home loan arrears (where repayments were more than 90 days past due) rose by 7 basis points to 0.80 per cent, marking a six-year high.

“Home loan arrears increased by 7 basis points during the quarter, reflecting cost-of-living pressures from higher inflation and interest rates,” the bank noted in its financial statements.

“The reported rate was also affected by slower resolution following earlier pauses in late-stage collections activity.

“Personal loan arrears improved modestly by 6bpts, with seasonal improvements partly offset by cost-of-living pressures. Credit card arrears remained flat.”

CEO Matt Comyn acknowledged in his comments that a jump in the cash rate and sticky inflation was heaping “uneven” pressure on some of the bank’s customers.

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“We remain committed to supporting our customers as they manage cost-of-living pressures,” he said.

“Higher inflation and interest rates continue to place uneven pressure on household incomes and business activity.

“While economic growth is slowing, the Australian economy remains resilient, supported by low unemployment and a strong public infrastructure and private investment pipeline.”

Home loan applications fell by 16 per cent, in line with slower auction activity across the country.