Daily Roundup

Commonwealth Bank posts strong Q1 with $2.8 billion profit

The Commonwealth Bank of Australia has kicked off the financial year in solid form, reporting an unaudited statutory net profit after tax of approximately $2.8 billion for the September quarter. The result was driven by a 3% lift in operating income, thanks to growth in lending and deposit volumes, though this was partially offset by weaker markets trading income. Operating expenses climbed 3% due to wage and IT vendor inflation, alongside higher cloud computing costs.

Credit quality remained sound throughout the quarter, with loan impairment expenses sitting at $300 million. The bank's collective provision coverage ratio held steady at 1.35%, and capital, funding, and liquidity ratios all remained comfortably above regulatory minimums. The underlying net interest margin stayed broadly stable, suggesting CBA is maintaining its pricing discipline despite competitive pressures.

Flight Centre bounces back with record travel volumes

Travel is booming again. Flight Centre Travel Group reported record total travel volume of $25.7 billion in FY26, with net profit after tax surging 38% to $149 million and earnings per share climbing 43% to 71 cents. The result came despite significant headwinds from Middle East tensions, which cost the leisure segment $60 million. The company also returned $87 million to shareholders through dividends and a $400 million share buyback program.

Looking ahead, Flight Centre is guiding for underlying profit before tax of between $290 million and $325 million in FY27, with results expected to be skewed toward the second half. Early signs in FY27 show the leisure segment rebounding, while corporate travel trends remain consistent with the end of last year. The company is investing heavily in artificial intelligence and digital transformation to drive future growth, positioning itself for the next phase of expansion.

PEXA faces headwinds but maintains strong customer satisfaction

Property settlement platform PEXA Group reported a tougher quarter, with transaction volumes declining 11.5% in the first quarter of FY27 compared to the prior year. The slowdown reflects challenging market conditions, including falling property prices and rising interest rates. Despite this, the company maintained impressive customer satisfaction at around 90% in Australia, with national market penetration holding steady at the same level.

In the UK, PEXA's remortgage transactions with NatWest are processing faster and delivering improved customer satisfaction, signaling progress on international expansion. The company is guiding for group revenue of $355 million to $380 million and EBITDA margins of 29.0% to 31.5% for FY27. However, regulatory uncertainty looms large—IPART's proposed 20% reduction in regulated revenue could materially impact future investment in innovation, and PEXA is preparing for various outcomes while engaging with regulators to mitigate potential impacts.

New Hope taps capital markets with hybrid securities offer

Coal and gas producer New Hope Corporation is proposing a subordinated, perpetual, redeemable hybrid securities offer, subject to market conditions. The securities are expected to carry fully franked floating rate distributions. Jarden Australia has been appointed as arranger and joint lead manager, with additional joint lead managers and co-managers also participating. The offer will be made under a prospectus to be lodged with ASIC and is available only to Australian residents.

DXN lands another major data centre contract

Modular data centre specialist DXN Ltd has secured a binding contract worth approximately $4.8 million with a leading global internet company for the design, supply, and commissioning of a modular Cable Landing Station. The contract is expected to deliver in the first quarter of FY28 and represents the fourth major win for the company, underscoring growing confidence in DXN's ability to deliver mission-critical infrastructure. The company will leverage its standardized engineering solutions to ensure time and cost efficiency on the project.