CBA stock falls 1.32 percent after mortgage rate move

Published on 10/07/2026 at 10:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

CBA stock traded at AUD 150.37 on October 7, 2026, while 14 analysts set a Strong Sell target of AUD 125.64. FY26 cash profit rose 7 percent to AUD 10.982 billion.

CBA, AU000000CBA7, Illustration mit AI erstellt.

CBA (ISIN AU000000CBA7) was trading at AUD 150.37 on the ASX on October 7, 2026, down AUD 2.01 or 1.32 percent from the prior close. The bank also confirmed a 0.25 percentage point increase in home loan variable rates effective October 9, according to ABC News on October 7, 2026.

Mortgage rates meet softer growth

The rate move follows the Reserve Bank of Australia's 0.25 percentage point increase in the official cash rate to 4.60 percent. For CBA, higher lending rates can support interest income, but the effect depends on competition, borrower demand and funding costs.

The bank's latest full-year figures provide the operating baseline. Cash net profit after tax from continuing operations reached AUD 10.982 billion in fiscal year 2026, up 7 percent from AUD 10.252 billion in fiscal year 2025, while statutory net profit reached AUD 10.911 billion, up 8 percent, according to Final Round AI on September 23, 2026.

Profit growth meets valuation pressure

Operating income rose 6 percent to AUD 30.224 billion in fiscal year 2026, while operating expenses also increased 6 percent to AUD 13.755 billion. Net interest margin slipped 3 basis points to 2.05 percent, showing why higher customer rates do not automatically translate into wider margins.

The valuation signal is more cautious than the earnings headline. Stock Analysis lists a Strong Sell consensus from 14 analysts, with an average 12-month price target of AUD 125.64. That target is AUD 24.73 below the October 7 price of AUD 150.37, while the quoted 52-week range runs from AUD 146.98 to AUD 185.59.

Stock remains near yearly low

CBA's market capitalization stood at AUD 251.4 billion on October 7, 2026. The stock was AUD 3.39, or 2.31 percent, above its 52-week low and AUD 35.22, or 18.98 percent, below its 52-week high, putting the day's decline in a wider valuation and momentum context.

The next investor checkpoint is CBA's annual general meeting on October 14, 2026, a date listed in the company's event information summarized by Simply Wall St. The combination of rising reported profit, a 2.05 percent net interest margin and a target below the market price leaves mortgage growth and margin resilience as the central issues for the stock.

CBA stock trades above its target

CBA stock was trading at AUD 150.37 on the ASX at 3:19 p.m. AEDT on October 7, 2026. Its market capitalization was AUD 251.4 billion on the same date.