Sydney, Feb 5, 2026, 16:49 AEDT — After-hours
- Commonwealth Bank shares rose 1.4% to close at A$159.28, outpacing a generally softer market.
- The bank highlighted a A$68 million pre-tax provision linked to ASIC’s Better Banking review, along with A$53 million in one-off income items.
- With the RBA pushing the cash rate up to 3.85%, investors are now focused on the half-year results and interim dividend due Feb 11.
Shares of Commonwealth Bank of Australia (CBA.AX) climbed 1.4% to close at A$159.28 on Thursday, bucking the S&P/ASX 200’s 0.4% decline. ANZ also advanced 1.4%, while National Australia Bank added 0.3%, indicating the banking sector outperformed the broader market. (Investing.com Australia)
This matters as CBA gears up to report half-year earnings next week, with its interim dividend decision often shaping the mood for Australian bank income trades. Investors use this narrow window to factor in potential surprises around margins, costs, or credit.
Rates play a key role here. Following a central bank shift, Australia’s banks are adjusting loan and deposit pricing, bringing back the familiar dilemma: higher rates may boost profits but risk straining borrowers if the pressure persists.
CBA revealed earlier this week a A$68 million pre-tax provision in operating expenses related to an additional goodwill payment tied to the corporate regulator’s Better Banking review. It also recorded A$53 million pre-tax in non-recurring items under other income — including a milestone from the sale of Commonwealth Insurance and a fair value gain on its Gemini investment following the crypto exchange’s IPO. The bank warned that customer re-segmentation will lead to restated divisional comparatives. CEO Matt Comyn and CFO Alan Docherty are set to hold a webcast briefing at 10:30 a.m. AEDT on Feb. 11. (CommBank)
On Feb. 3, the Reserve Bank of Australia raised its cash rate target by 25 basis points—each basis point equals 0.01 percentage point—bringing it to 3.85%. The RBA cited rising inflationary pressures driven by stronger private demand and tightening capacity. (Reserve Bank of Australia)
CBA and fellow big four banks Westpac, ANZ, and NAB all moved quickly to implement a 25-basis-point increase in variable home-loan rates. The hikes will kick in between Feb. 13 and Feb. 17, varying by lender. CBA also bumped up rates on certain eligible variable-rate business loans, according to the banks. (Reuters)
Belinda Allen, Head of Australian Economics at Commonwealth Bank, said “inflation is simply too high” and noted the central bank’s firm stance on bringing it back to target. CBA economists now forecast a further rate hike in May, pushing the cash rate to 4.10%. (CommBank)
Rising rates often boost bank net interest margins — the difference between loan earnings and deposit costs. Yet, the play gets complicated when banks face tougher deposit competition or consumers pull back on spending.
RBA Governor Michele Bullock said at a media conference that the board felt “uncomfortable with inflation at the level it is,” which prompted the rate increase. She declined to assign a probability to another hike, emphasizing that future decisions will hinge on incoming data. (Reserve Bank of Australia)
The downside is clear: faster mortgage repricing ramps up repayment pressure and pushes bad debts higher, despite banks showing revenue gains on paper. Costs remain unpredictable, particularly if lenders ramp up retention efforts and hike deposit pricing to protect market share.
CBA is gearing up for its half-year results and interim dividend announcement on Feb. 11, with the stock going ex-dividend on Feb. 18. According to the bank’s calendar, the interim dividend payment should land around March 30. (CommBank)
