Commonwealth Bank was less profitable in the first half, as operating expenses increased while income stayed flat.
Australia's biggest bank made $5.02 billion in cash profit after tax in the six months to December 31, down three per cent from the same time in 2022.
"Our lower cash profit reflects cost inflation and a competitive operating environment," CBA chief executive Matt Comyn said in a letter to shareholders.
The bank's net interest margin, a key measure of profitability, dropped 11 basis points to 1.99 per cent, as customers switched to higher yielding deposits, wholesale funding costs increased and CBA's New Zealand subsidiary ASB delivered a smaller contribution.
Moomoo analyst Jessica Amir tweeted that the results were "lukewarm" and showed the average consumer is in pain.
CBA announced an interim dividend of $2.15 a share, fully franked.