Commonwealth Bank Posts Flat 1Q Profit Despite Margin Pressure — Update

By Stuart Condie

SYDNEY--Commonwealth Bank of Australia reported a flat first-quarter profit as volume growth helped offset a contraction in its net interest margin amid competition for customers.

Australia's largest bank by market capitalization on Tuesday posted an unaudited net profit for the three months through September of about 2.5 billion Australian dollars, equivalent to US$1.62 billion.

That was broadly flat on the average of the prior two quarters, and also compared with unaudited figures for the same period a year earlier.

The lender reported an unaudited cash profit of A$2.6 billion for its first fiscal quarter, up by about 2% on a year earlier and about 1% higher than the average of the prior two quarters.

Operating expenses rose by 4% on the average of the prior two quarters, rising at a faster pace than operating income, which rose by 3%.

Net interest margin was lower than the 2.08% reported by the bank in the second half of its last fiscal year, but household deposits and home-loan lending both grew at a faster pace than the overall market.

Commonwealth Bank said that it took A$17.8 billion in household deposits over the September quarter, and issued A$9.3 billion in mortgages. Deposits were up by 9.5% on a year earlier, and mortgages up by 6.1%.

Business lending grew by A$2.6 billion over the quarter, in line with the overall market. It was up by more than 10% on a year earlier.

"We are closely watching the increased competitive intensity and implications across the financial system, and we will continue to adjust our settings as appropriate," Chief Executive Matt Comyn said.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

November 10, 2025 17:17 ET (22:17 GMT)