Sydney, Feb 5, 2026, 21:13 AEDT
- Shares in Commonwealth Bank rose 1.4% after the lender disclosed a A$68 million pre-tax provision linked to an ASIC review.
- The bank highlighted A$53 million in pre-tax non-recurring income items and announced it will restate divisional comparatives.
- Attention turns to CBA’s half-year results on Feb. 11, along with its interim dividend, as rising rates start impacting mortgages.
Shares of Commonwealth Bank of Australia jumped 1.4%, closing at A$159.28 on Thursday. That outpaced the broader market, which dipped 0.4%, despite the bank revealing a A$68 million pre-tax provision tied to an ASIC review. ANZ also gained 1.4%, while National Australia Bank edged up 0.3%. (TechStock²)
The update comes as investors adjust their outlook on the big four banks following the Reserve Bank of Australia’s recent rate hike. Banks wasted no time passing the increase onto variable mortgage rates. CBA and its competitors announced the rate changes would kick in between Feb. 13 and Feb. 17, depending on the lender. (Reuters)
CBA will release its half-year results and declare an interim dividend on Feb. 11. The shares go ex-dividend on Feb. 18, and the interim payout is set for March 30, according to the bank’s calendar. (CommBank)
On Tuesday, the lender disclosed in an ASX filing it recognised a A$68 million provision within operating expenses for an extra “goodwill payment” to certain customers linked to ASIC’s Better Banking review. It also booked A$53 million pre-tax in non-recurring items under other operating income, including a milestone payment from the sale of Commonwealth Insurance Limited and a fair value gain on its Gemini investment after its IPO. The bank noted ongoing customer re-segmentation will prompt restated divisional comparatives, though group cash net profit after tax remains unchanged. (Asx)
Jefferies forecasts Commonwealth Bank of Australia’s cash earnings for fiscal first-half 2026 at A$5.22 billion, according to MT Newswires. This metric, favored by Australian banks, excludes certain one-off items and accounting fluctuations to reflect underlying profit. (MarketScreener)
CBA economist Belinda Allen warned inflation is “simply too high” for the central bank to ignore, suggesting another rate hike is on the cards. She said the RBA is unlikely to pause in May unless inflation drops sharply in the March quarter. CBA economists are forecasting the cash rate will hit 4.10% in May. (CommBank)
RBA Governor Michele Bullock announced after the Feb. 3 meeting that the board nudged the cash rate target up by 25 basis points—to 3.85%. She emphasized that future moves would depend on incoming data. Inflation, she noted, remains “at a higher rate than we are comfortable with.” (Reserve Bank of Australia)
Investors are focused on whether rising rates boost net interest margin — the gap between loan earnings and deposit costs — without triggering a spike in credit losses. Costs remain crucial, particularly as customer remediation and system upgrades return to the forefront.
The trade-off isn’t clean. Faster mortgage repricing could ramp up repayment stress, while stiffer competition for deposits might eat into margins right when higher loan rates start to help. Add to that shifting customer groupings across divisions, and year-on-year comparisons could get noisier than usual.
