Commonwealth Bank of Australia's (ASX:CBA) fiscal third-quarter cash earnings were 1% below the estimates compiled by Visible Alpha and 1% above the prior second-half Jefferies run rate, Jefferies said in a note on Wednesday.
The bank reported a cash net profit after tax of around AU$2.7 billion for the fiscal third quarter, up 4% from a year earlier. Operating income was flat in the three months to March 31 compared with the average of the first two quarters of fiscal 2026, as a 1% increase in net interest income was offset by lower other operating income.
The bank is exposed to an over-indebted Australian household, which the analysts view as a headwind to growth as its high-quality, low-cost retail deposit base leaves it more exposed to falling interest rates.
The investment firm retained its underperform rating and raised the price target to AU$142.26 from AU$140.83.
Commonwealth Bank of Australia's shares tumbled 10% in recent Wednesday trade.