Australia's biggest bank says there was just a modest increase in late payments in the September quarter, despite the impact of higher interest rates.
Commonwealth Bank says it turned a $2.5 billion profit in the September quarter, up one per cent from a year ago, while observing a modest increase in consumer arrears despite soaring interest rates.
CBA said on Tuesday that just 0.49 per cent of its mortgage customers were 90 or more days behind on their payments, up "modestly" from 0.47 per cent from three months ago.
Higher interest rates have impacted borrowers, Australia's biggest bank said, but customers have been supported by a strong labour market.
Overall consumer arrears remain at historically low levels, CBA said, echoing remarks from Australia's other three big retail banks from the last few days.
Some had expected that as home loan customers rolled off the "mortgage cliff" and onto much higher variable rates, there would be a big increase in late payments, but that hasn't been the case.
"While some remain well positioned, we recognise that others are finding the higher cost of living very tough," chief executive Matt Comyn said.
"Our customers are continuing to take practical steps to navigate through a period of higher household finances and we are here to help them."
Australia's economy is being supported by low unemployment and strong population growth, and Commonwealth Bank is optimistic on its medium-term outlook, Mr Comyn added.
The bank's unaudited $2.5 billion in net profit after tax for the three months to September 30 was flat compared to its average for the second half of 2022/23, and up one per cent from the same time a year ago.
Late Tuesday morning, CBA shares were up 0.5 per cent to $101.77.