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The Commonwealth Bank of Australia (CBA) unveiled its half-year results for the period ending December 2025 (H1 2026) on Wednesday (11 February), reporting that business lending reached $168 billion.
This is up 12 per cent from $150 billion in December 2024 and well above the $90 billion recorded in December 2019.
The performance also exceeded the bank’s compound annual growth rate of 10.7 per cent.
Over the 12 months to December 2025, CBA’s business lending growth was 1.3 times system growth.
Across the entire group, business lending rose 6 per cent in H1 2026 and 12.3 per cent over the 12 months to December 2025. Of the total $253 billion, $67 billion was attributed to the bank’s institutional banking and markets division (IB&M).
One in four Australian businesses now describe CBA as their main financial institution.
System growth, including institutional lending, was comparatively softer at 5.8 per cent for the half and 19.8 per cent for the year.
Commercial property remained a key driver of growth, with CBA increasing its exposure to the segment by 7.2 per cent over the half, predominantly supported by residential property activity. Total group exposure stood at $112.9 billion, up from $105.4 billion in June 2025 and $98.4 billion in December 2024.
CBA said growth in residential property was underpinned by rising development approvals, increased commencements and stabilising construction costs.
“Conditions remain conducive to support growth in housing supply and investment activity,” the bank added.
Lending also rose in wholesale trade, up 12 per cent for the half to $21.1 billion, and in entertainment, tourism and leisure, up 8 per cent to $22.4 billion, although these sectors contributed less to overall growth.
CBA’s market share in business lending continued to edge higher.
In December 2025, market share stood at 17.6 per cent according to the Reserve Bank of Australia and 19.1 per cent according to the Australian Prudential Regulation Authority. This compares with 17.6 per cent (RBA) and 18.9 per cent (APRA) in June 2025, and 17.2 per cent (RBA) and 18.7 per cent (APRA) in December 2024.
Business transaction accounts also increased, rising 7 per cent from 1.3 million in December 2024 to 1.4 million in December 2025. In December 2019, the bank held around 800,000 business transaction accounts. Approximately 90 per cent of business loans are linked to a transaction account.
Speaking to investors, chief executive officer Matt Comyn, said: “The Business Bank has had another period of strong performance. Pre-provision profit growth was 8 per cent and cash profit growth was 14 per cent.
“We grew lending at 1.3 times system, increasing balances by $18 billion in the year. Business Banking lending balances have increased by 87 per cent, or $78 billion in the past six years, supporting growth and jobs in our economy.
“For small businesses we have doubled the volume of loans auto approved through BizExpress over the past two years and have reduced annual loan maintenance activity by 85 per cent. We also launched a national AI, cyber security and digital capability initiative, supporting up to 1 million small businesses to lift productivity and competitiveness. The combination of deep customer relationships and prudent lending growth is delivering sustained earnings performance.”
Home loans
In home lending, CBA tilted even further towards its own channels while broker-originated volumes remained steady.
CBA’s new fundings leaned heavily into proprietary distribution throughout H1 2026 – replicating the 67 per cent direct-channel dominance from H2 2025 while edging above earlier patterns.
Stripping out Bankwest and ASB, broker-originated new business came in at 33 per cent of the $83 billion total CBA-branded mortgages settled over the six months – similar to the prior half and just below the 34 per cent from H1 2025.
Read the full analysis at Broker Daily’s sister brand, The Adviser.
Profits and margins
CBA posted $5.4 billion in profit for the half year, up 6.1 per cent on the first six months of the last financial year
However, the bank’s underlying net interest margin declined by four basis points to 2.04 per cent in the first half. CBA said this was primarily due to competition in home lending and lower treasury and market income.
CBA expects headline consumer price index inflation, year on year, to print at 3.2 per cent for the December quarter of 2026, before easing to 2.6 per cent by the December quarter of 2027.
Following the recent RBA decision to hike rates, CBA is forecasting one further cash rate increase from the Reserve Bank of Australia in May, which would take the cash rate to 4.1 per cent, where it is expected to remain through the rest of the year and into 2027.
[Related: Healthy appetite for commercial real estate lending amid cost pressures]