CBA Posts Record Profit Amid Slowing Economy and Mortgage Slump

Commonwealth Bank of Australia (CBA), the nation's second-largest publicly traded company, posted a record A$10.98 billion profit for the fiscal year ended June 30. This represents a 7 percent jump in annual cash profit and surpasses analyst forecasts.

The bank achieved this growth by expanding at or above system-wide rates in all five core business segments: home lending, business lending, consumer finance, household deposits, and business deposits.

However, the bank's forward-looking indicators are more cautious. Mortgage applications have slumped 15 percent since the federal budget was handed down, a decline management attributed directly to higher interest rates and elevated living costs.

The Reserve Bank of Australia's aggressive tightening cycle has pushed the cash rate to levels not seen in over a decade, cooling the housing market and eroding borrowing capacity for households already juggling larger grocery, energy, and insurance bills.