Sydney, Feb 4, 2026, 16:49 AEDT — After-hours
- CBA shares ended the day 2.6% higher, closing at A$157.06 following a volatile session.
- Following the RBA’s rate increase, the bank plans to raise variable mortgage rates by 25 bps starting Feb. 13.
- Attention shifts to CBA’s half-year results on Feb. 11, watching closely for clues on margins and credit.
Commonwealth Bank of Australia’s shares climbed 2.6% to close at A$157.06 on Wednesday, trading within a session range of A$150.50 to A$157.34. (Investing)
The rally is driven by investors positioning themselves ahead of the bank’s half-year results due next week, following a warning about accounting and presentation tweaks that will alter some comparisons. On Tuesday, the bank disclosed in an exchange filing a A$68 million pre-tax provision related to an Australian Securities and Investments Commission (ASIC) review, alongside A$53 million in one-off income items. It also noted customer re-segmentation will change how divisional figures are reported, though the group’s cash net profit after tax (NPAT) remains unaffected. (CommBank)
The Reserve Bank of Australia raised the cash rate by 25 basis points to 3.85% on Tuesday — its first increase in two years. Governor Michele Bullock told reporters, “I don’t know if it’s in a (tightening) cycle.” Markets are pricing in about a 75% chance of another hike in May. (Reuters)
CBA announced a 0.25 percentage point hike in variable home loan rates starting Feb. 13, along with rate increases on select business lending products. Westpac Banking Corp, National Australia Bank, and Australia and New Zealand Banking Group also plan to raise variable home loan rates by 25 basis points, effective between Feb. 13 and Feb. 17. “We know that interest rate changes can create additional pressure for our home loan customers,” said Angus Sullivan. (Reuters)
Shareholders are eyeing whether higher lending rates will expand the net interest margin — the gap between what banks earn on loans and pay on deposits — without a corresponding rise in funding costs.
Belinda Allen, senior economist at the bank, said the central bank’s job isn’t done yet. “Inflation remains too high for the RBA right now,” she noted. CBA economists are forecasting another hike in May, pushing the cash rate up to 4.10%. (CommBank)
A further rise in rates would put mortgage holders under pressure and might trigger more arrears and impairment charges, especially if job growth weakens. Slower housing turnover or a dip in business borrowing could erode gains from loan repricing.
CBA’s half-year results drop on Feb. 11, with the 10:30 a.m. AEDT briefing to follow. Investors will zero in on margins, costs, and any early signs of credit stress.
