Shares in Commonwealth Bank of Australia (CBA) edged lower on Friday, closing at A$158.91, a decline of 0.23%. This move snapped a five-session winning streak for the banking heavyweight.
Earnings and Economic Focus
Investor attention is firmly fixed on the bank's upcoming half-year financial results, scheduled for release on February 11. The report is expected to provide critical insights into net interest margins and credit quality, key metrics as the interest rate environment evolves.
The broader Australian equity market faced significant pressure, with the S&P/ASX 200 index falling 2.03% to close at 8,708.80 points.
Deposit Rate Adjustments
Commonwealth Bank has announced it will raise interest rates on specific savings accounts, effective February 13. The adjustments include increasing the GoalSaver account's bonus rate to 4.50% per annum and offering a new introductory rate of 4.70% p.a. for NetBank Saver customers.
These changes come shortly after the Reserve Bank of Australia increased the official cash rate by 25 basis points to 3.85%. In response, CBA and other major lenders have begun lifting variable home loan rates, with most changes taking effect from mid-February.
Analysts note that while higher lending rates can boost revenue, intensified competition for deposits may pressure the net interest margin—the difference between what banks earn on loans and pay for funding.
When reporting its earnings, the market will scrutinize the bank's commentary on household financial stress, impairment charges, and its outlook for dividends, which are traditionally announced with the half-year figures.
