Commonwealth Bank of Australia falls after lender flags declining mortgage demand despite record earnings

Commonwealth Bank of Australia

12/08/2026 04:52

Updates
** Shares of Commonwealth Bank of Australia CBA.AX fall as much as 2.2% to A$170.11, their lowest level since July 22, and on track for a four-session losing run
** The country's top lender flags steep decline in mortgage demand following the federal government's tax changes in May
** Also warns of a slowing economy as high interest rates and inflation pressured household budgets and economic activity
** CBA reports record annual cash earnings A$10.98 billion ($7.75 billion), slightly beating VA estimate of A$10.85 billion
** This in-line result, in our view, might not be enough to see the stock up given its current valuation - UBS
** Citi sees pressure on management to articulate cost benefits against otherwise slowing productivity
** CBA's downbeat commentary on the weakening housing market follows smaller rival Westpac WBC.AX reporting a 20% fall in mortgage applications
** CBA up 7.1% YTD, including the day's moves

($1 = 1.4170 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com;))