Commonwealth Bank of Australia's (ASX:CBA) fiscal 2026 results topped analyst estimates, helped by growth in its lending and mortgage businesses, while the bank flagged concerns about a slowing economy amid weaker household demand.

The bank reported fiscal 2026 cash earnings of AU$10.98 billion, up 7% year on year and 1% above Jefferies' estimate, supported by lower-than-expected bad debt expenses.

The bank's total capital in the three months to June 30 came in at AU$108.83 billion, up from AU$103.7 billion a year ago, while its CET1 capital for the period was AU$62.76 billion, rising from AU$60.98 billion reported for the June 2025 quarter.

The bank believes that inflation remains too high in Australia and expects it to gradually moderate as the economy slows, but noted that the economy has remained resilient despite global volatility.

Higher interest rates were felt unevenly across households, with interest income on loans rising to AU$138.7 billion while interest expense on deposits and borrowings reached AU$164.5 billion.

Spending among average CBA home loan customers has risen 15% over five years, compared with 24% for non-home loan customers, while CBA application volumes have softened 15% since May and are down 17% on the prior corresponding period.

The bank's New Zealand unit, ASB, saw cash net profit after tax fall 2% in the year, as the unit's Chief Executive, Vittoria Shortt, said the Middle East conflict has caused "significant disruption."

"While we expect economic momentum to return in the coming months, uncertainty remains the new norm, and we're cognizant that many New Zealanders will continue to face cost pressures," Shortt said.