The Commonwealth Bank of Australia (ASX:CBA), the country's largest bank by market capitalisation, has cautioned that domestic growth is decelerating, with elevated interest rates and inflation exerting uneven pressure on household incomes and broader economic activity.

CEO Matt Comyn noted in the bank's latest outlook statement that housing activity, in particular, has softened from a high base.

The warning accompanied the release of CBA's FY26 financial results, which showed robust earnings growth. The bank reported a 7% increase in cash net profit after tax to $11 billion, a 6% rise in pre-provision profit to $16.5 billion, and a 14% improvement in return on equity.

Mr Comyn said operating income climbed 6%, driven by customer and volume growth alongside a broadly stable underlying net interest margin.

"In FY26, CBA grew at or above system in each of our five core domestic product categories: home lending, business lending, consumer finance, household deposits and business deposits," he said.

"It is the first time CBA has achieved this and the first time any major Australian bank has done so in the past 15 years. We remain the main financial institution for one in three Australians and one in four Australian businesses."

Growth was broad-based across home lending, business lending, and customer deposits, underpinned by stronger transaction relationships.

"We continued to invest in customer service, technology, operational resilience and productivity. Investment spend increased six per cent to $2.4 billion," Mr Comyn said.

"The franchise continued to grow through the second half despite competition. Loan impairment expense increased from low levels and arrears rose in some consumer portfolios, while realised credit losses remained low, overall credit quality remained sound and provision coverage remained strong," he added.

The CBA board declared a final dividend of $2.70 per share, fully franked, bringing the full-year dividend to $5.05 per share.

In the bank's outlook commentary, Mr Comyn observed that the Australian economy has remained resilient, supported by historically low unemployment and sustained longer-term investment. However, application volumes appear to have stabilised in recent weeks.

"Businesses continue to manage higher input costs and supply uncertainty. CBA enters FY27 with leading customer relationships, a broader franchise and a strong balance sheet," he said.

"Our priorities are to deepen primary customer relationships, maintain discipline in our volume and margin choices, improve productivity, and deliver measurable customer, risk and financial benefits from our investments. Our capital, funding and liquidity positions provide flexibility and resilience as conditions evolve."

As the first of Australia's four major banks to report full-year results, CBA's performance and outlook are closely watched as a barometer of household and business conditions across the broader economy.

CBA shares were steady at $173.90 with a market capitalisation of $290.8 billion prior to market open.