Commonwealth Bank stock faces mortgage stress despite $2.8 billion profit

Commonwealth Bank reported a quarterly cash profit of $2.8 billion in an update released on Wednesday, November 11, as rising mortgage arrears and weaker home-loan applications highlighted growing pressure on Australian households. The figures were reported by Capital Brief.

Profit holds as credit pressure builds

The quarterly result showed stronger earnings alongside signs of deteriorating borrower resilience. Capital Brief reported that the cash profit rose 8 percent from the same quarter a year earlier, while the result was broadly flat against the average quarterly outcome in the second half of fiscal 2026.

Home loans with payments more than 90 days overdue rose by seven basis points to 0.80 percent, the highest level in 14 years. Commonwealth Bank also increased collective bad-debt provisions by $105 million, pointing to a more cautious credit backdrop as higher interest rates and living costs weigh on borrowers.

The bank's loan book continued to expand, but new home-loan applications were 16 percent below the comparable period a year earlier. UBS analyst John Storey said the figures tempered confidence in the sustainability of current mortgage growth. The combination of slower demand and higher arrears gives investors a more mixed picture than the headline profit increase suggests.

Housing demand remains a key test

Capital Brief also cited Australian Bureau of Statistics figures showing that new home loans fell 15 percent in the September quarter. Investor loans declined 30.6 percent after announced reforms to negative gearing and capital gains tax, while first-home-buyer loans fell 12.3 percent over the year.

For Commonwealth Bank, the immediate issue is whether continued lending growth can offset weaker applications and rising credit costs. Mortgage arrears remain a small share of the overall book, but their direction matters because late-stage delinquencies can precede higher impairment expenses. The latest update therefore keeps asset quality and housing demand at the center of the investment case.

Commonwealth Bank stock traded at 105.31 euros on Lang & Schwarz at 09:35 CET on Thursday, November 12, 2026.

Australian equities provide the broader market context for Commonwealth Bank stock through the S&P/ASX 200.

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