'Perfection is implicitly expected': CBA sells off despite in-line Q1 result
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More news: Commonwealth Bank shares slumped on the ASX despite the lender delivering a first-quarter result which broadly met market estimates.
CBA shares were down 6.5% at 1:45pm AEDT, making it the second worst performer on the ASX 200.
UBS analyst John Storey said CBA's headline figures show the bank is tracking expectations for the first half of FY26. He noted that the 6.1% increase in costs, quarter over quarter, was "somewhat surprising", as was the decline in CBA's CET1 ratio to 11.75% compared to first-half consensus estimates of 12.3%.
What they said: "Quarterly results have historically been unpredictable, making it challenging to form a definitive view on this release due to limited information," said Storey.
"Over the past month, CBA's share price has risen 3.91%, outperforming NAB and [Westpac] but lagging ANZ, which gained 8.95%. Given the current valuation, it would appear perfection is implicitly expected."
Commonwealth Bank shares slide as Q1 cash profit hits $2.6b
More news: Commonwealth Bank shares tumbled after reporting a 2% lift in first-quarter cash profit to $2.6 billion.
CBA shares were down 5.6% to $165.07 at 12:20pm AEDT. The stock is up around 10% over the last 12 months.
CBA posts 2% lift in Q1 cash profit to $2.6b
The news: Commonwealth Bank reported a cash profit after tax of $2.6 billion for the first quarter, up 2% on the prior corresponding period.
The result was also 1% higher than the quarterly average for the second half of FY25.
The numbers: Operating income climbed 2% year on year, driven by lending and deposit volume growth, and higher non-interest income.
Home loans grew by $9.3 billion, or 1.1 times the system average, over the three months to September.
Household deposits rose by $17.8 billion, or 1.2 times the system average.
Business lending lifted 10.4%, or $2.6 billion, at the same level as the system average.
What they said: "We are closely watching the increased competitive intensity and implications across the financial system, and we will continue to adjust our settings as appropriate," CEO Matt Comyn said.
"The Australian economy remains resilient. Economic growth is recovering and disposable income is rising for many households."
The sources: ASX, UBS research
