He said some households remained under financial pressure, but the number of mortgage holders behind in their repayments eased in the September quarter. Impaired assets at the bank grew to $8.8 billion, but mortgage delinquencies remained stable at 0.65 per cent.

“This time of year, you see a slight improvement in arrears … it’s just a timing of cash flows and tax refunds, we’ve seen the stage 3 tax cuts come through, the majority of that has been saved versus spent,” Comyn said.

“There’s also been some targeted relief for households at the federal but also state level. I think that slightly eased the burden in a targeted way on households.”

While CBA’s unaudited cash profit of $2.5 billion in the three months to September 30 was flat compared to the same time last year, it was 5 per cent higher than quarterly earnings in the second half of the 2024 financial year.

“Many Australians continue to be challenged by cost of living pressures,” Comyn said. “Inflation is moderating, but at a slowing pace, and global geopolitical tensions are creating uncertainty.

“Growth in the Australian economy remains slow, as higher rates continue to weigh on consumer demand and bring inflation back to the target range.”

Expenses rose 3 per cent on the back of increased wages, spending on investments, and an extra day in the quarter.

Home loans grew $8.6 billion in the September quarter despite a “highly competitive market”, while household deposits grew $15 billion over that same period.

UBS analyst John Storey said: “The CBA … trading update showed a number of positive trends most notably around improving revenue outlook.”

CBA shares closed 0.4 per cent lower at $149.62.