Commonwealth Bank Lifts First-Half Profit 5%, Beating Expectations

By Stuart Condie

SYDNEY--Commonwealth Bank raised its first-half profit by 5% as Australia's largest bank beat analysts' forecasts despite pressure on margins from competition for mortgages.

The lender on Wednesday reported a net profit for the six months through December of 5.37 billion Australian dollars, or about US$3.81 billion. Revenue rose by 6% to A$15.00 billion.

The average analyst forecast had been for a statutory net profit of almost A$5.17 billion, according to data compiled by Visible Alpha.

The board lifted the interim dividend to A$2.35 a share, from A$2.25. That was ahead of the A$2.31 expected by analysts.

Operating expenses rose by 9% to A$6.92 billion, with the bank citing inflation and technology spending.

Net interest margin--essentially a measure of how much a bank makes from lending relative to how much it pays to savers--declined to 2.04%, from 2.08% at June 30.

Commonwealth Bank, which also reported a 2.08% margin a year ago, blamed competition in home-loan lending and lower income from its treasury and markets operations.

Australia's cash rate fell by 75 basis points over 2025 following three cuts by the Reserve Bank spaced across the year. Bank margins typically benefit from higher rates.

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

(END) Dow Jones Newswires

February 10, 2026 16:07 ET (21:07 GMT)