Commonwealth Bank of Australia 3Q26 Trading Update

CBA's 3Q26 update showed cash earnings of A$2.7bn, meeting consensus, although its CET 1 capital ratio of 11.6% was softer than expected. Goldman Sachs maintains a Sell rating, citing an excessive valuation premium and limited growth prospects.

Key Takeaways

• 1.CBA reported 3Q26 cash earnings of A$2.7bn, which was in-line with both Goldman Sachs estimates and consensus expectations.
• 2.The Common Equity Tier 1 (CET 1) ratio of 11.6% was likely below market expectations due to higher-than-expected risk-weighted assets (RWAs) and FX drags.
• 3.Bad debt expenses (BDDs) increased to 12 basis points of average loans, driven by a $200m provision top-up related to revised macro forecasts stemming from the Middle East Conflict.

Table of Contents

• Key Takeaway
• Summary of key third quarter trends
• CBA Investment Thesis
• CBA Price Target Risks and Methodology
• Disclosure Appendix
• Ratings, coverage universe and related definitions

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