CBA posts $10.9b annual profit as home loan demand drops 15% since May

Commonwealth Bank, the country’s second-largest listed c…

Commonwealth Bank, the country’s second-largest listed company, has unveiled a full-year net profit of $10.9 billion, underscoring its resilience in a slowing housing market. The result, released Wednesday morning, highlighted a significant pullback in new home lending, which has fallen 15% since the Reserve Bank’s May rate hike.

The bank’s earnings were buoyed by strong retail deposit growth and disciplined cost management, though executives flagged mounting pressure on household budgets. Mortgage arrears remain low, but the lender has set aside additional provisions for potential stress, citing higher living costs and softer property prices in some regions.

Meanwhile, the Australian share market is poised to open lower, with investor optimism over a quick reopening of the Strait of Hormuz waning. Oil prices have pared recent gains as diplomatic efforts stall, while energy and mining stocks are expected to drag the benchmark index at the start of trading.

Analysts noted that the banking sector’s outlook is

Analysts noted that the banking sector’s outlook is increasingly tied to the pace of rate cuts, with many expecting the RBA to hold rates steady through the third quarter. CBA’s loan book growth is likely to remain tepid, but its capital position—among the strongest in the industry—provides room for shareholder returns.

Investors will now turn to consumer confidence data due later this week, which could signal whether the rate-hike cycle is finally cooling demand. For now, the bank’s results offer a mixed picture: solid profitability against a backdrop of cautious borrowing and global uncertainties.