Commonwealth  Bank of Australia (CBA) reported a 6 per cent rise in third-quarter cash earnings, helped by growth in lending volumes and higher trading income, and said its margins were stable.

Cash net profit after tax for the country’s biggest lender was about A$2.6 billion (US$1.68 billion) for the three months ended March 31.

Its interest income rose 1 per cent during the period. Home lending volume in Australia grew 4.1 per cent, while business lending increased 9.1 per cent from December 2024 levels.

CBA said its net interest margin for the quarter was stable, excluding non-recurring earnings. It, however, did not provide a figure for the key profitability gauge in the limited trading update.

Analysts at Citi said that CBA’s core earnings were ahead of expectations and margins held up better than peers.

“It has been another challenging period for many Australian households and businesses dealing with cost of living pressures,” CBA chief executive Matt Comyn said in a statement.

CBA controls a quarter of the country’s A$2.2 trillion mortgage market, and therefore faces a bigger risk to earnings than peers if deposit spreads revert to more normal levels as interest rates go down.

CBA also joined its smaller peers in saying that Australia’s strong economic fundamentals will help the country steer through the uncertainty caused by global trade shifts.

“There is heightened risk to the global economy from geopolitical and macroeconomic uncertainty which could slow the domestic economy. Australia is in a relatively strong position to navigate the challenges,” Comyn said.