Commonwealth Bank of Australia (ASX:CBA) reported fiscal 2026 cash earnings of AU$10.98 billion, up 7% year on year and 1% above Jefferies and Visible Alpha estimates, according to a Wednesday Jefferies note.

The bank's total capital in the three months to June 30 came in at AU$108.83 billion, up from the AU$103.7 billion it reported in the year-ago period, it reported on Wednesday.

The result was supported by lower-than-expected bad debt expenses, although credit provision coverage declined half on half, the note added.

The investment firm said that business banking segment performed particularly strongly, while New Zealand operations were weaker due to net interest margin and foreign exchange pressures.

Jefferies kept an underperform rating on Commonwealth Bank of Australia with a price target of AU$145.20.

The bank's shares fell past 1% in recent Wednesday trade.