Is it the right time to invest in Commonwealth Bank of Australia?

Commonwealth Bank of Australia reporting March quarter 2026 with statutory NPAT about $2.6 billion and cash $2.7 billion.

Commonwealth Bank of Australia (ASX: CBA)

In the March quarter 2026 update, statutory net profit after tax was about $2.6 billion and cash net profit after tax about $2.7 billion. Operating income was flat as lending and deposit growth offset fewer trading days. Net interest margin stayed steady excluding one-off items. The environment remained challenging due to cost pressures, higher interest rates and global uncertainty related to Middle East disruption and supply chain issues. Despite this, the bank achieved strong results and paid $3.9B in dividends and supporting more than 800,000 shareholders and superannuation members. Australia showed resilience although spending and business activity were expected to slow. Capital generation remained strong and earnings quality stayed stable overall for context update.

Operating performance

Operating income was flat, with net interest income up 1% from volume growth in deposits and lending, partly offset by pricing competition, currency weakness, fewer days and rate lag. Other income fell 2% due to weaker trading and prior items. Operating expenses rose 1% from higher cloud use, software and AI investment, partly offset by productivity actions and timing benefits. Retail transaction accounts increased by over 170,000, home loan new funding reached $45 billion, and business transaction accounts rose 7% to 1.4 million. Business lending grew above system across sectors Home lending momentum remained strong during the period Deposit and lending volumes continued to support the income base while cost discipline supported expense management across retail and business segments

Provisions and credit quality

Loan impairment expense was $316 million, or 12 basis points of gross loans and acceptances. Forward-looking provisions increased by $200 million as downside scenario weighting rose. Individual provisions stayed at $0.8 billion and actual losses remained low. Total coverage ratio was 1.57%. Home loan arrears rose 6 basis points, credit card arrears 2 basis points, and personal loan arrears increased 30 basis points due to seasonal and portfolio effects. Corporate troublesome and non-performing exposures reached $6.5 billion, equal to 0.94% of total committed exposure, driven by single name movements. Overall credit quality remained broadly stable Portfolio settings reflected cautious approach to risk across segments Seasonal effects were a key driver in retail arrears movements during the quarter

Balance sheet, capital and funding

Customer deposit funding accounted for 79% of total funding. Long-term wholesale funding issuance reached A$32 billion for the financial year to date across markets and products. Liquidity remained strong with a Liquidity Coverage Ratio of 133% and a Net Stable Funding Ratio of 116%. CET1 capital ratio stood at 11.6% after the 1H26 dividend impact of 76 basis points. Earnings added 51 basis points, offset by risk-weighted assets at 34 basis points, other adjustments of 10 basis points and interest rate risk in the banking book of 22 basis points. Additional movements came from foreign exchange and capitalised software changes. Credit risk-weighted assets rose with lending growth, while market risk declined overall capital position stable.

(Source: Company Report)