The lender’s latest report for the quarter ending March 31 has revealed home loan arrears have increased to 0.71 per cent over the period, signalling that many mortgage holders are struggling to keep up repayments.

The increase is the largest since 2019 and is higher than Commonwealth Bank’s historical average of 0.65 per cent.

Commonwealth Bank is Australia’s largest lender and writes about one in four mortgages.

Its chief executive Matt Comyn acknowledged the last quarter had been “another challenging period” for many households and businesses amid cost of living pressures.

“We have remained focused on proactively engaging with our customers on a range of support options to help those who need it most,” he said in the report released Wednesday.

The lender’s personal loan arrears are also at their highest in six years, with the report claiming the increase was largely in line with seasonal trends, while credit card arrears remained generally stable.

A flat cash profit of $2.6 billion was posted by the bank during the third quarter of the 2025 financial year.

In the new report, Mr Comyn also foreshadowed a potential slowdown of the domestic economy.

He said a “heightened risk” to the world economy from "geopolitical and macroeconomic uncertainty" could affect Australia.

“Australia is in a relatively strong position to navigate the challenges. Australia remains an attractive place to live and work,” the bank’s chief executive said.

“Government investment in infrastructure and services is helping to support employment and growth, and underlying inflation is moderating.”

Commonwealth Bank’s performance largely met market expectations on Wednesday, rising about 0.6 per cent in the early moments of the day’s trading.

Its chief executive on Wednesday also praised the Reserve Bank of Australia’s “experiment” on tackling inflation, with every major bank now predicting the RBA to cut rates next week after a fall in inflation in the December quarter.