What happened to the Commonwealth Bank (ASX:CBA) share price in November?

Core Viewpoint - The Commonwealth Bank of Australia experienced significant underperformance in November, with its share price dropping 11%, compared to a 3% decline in the ASX 200 index [1] Financial Performance - For the first quarter of FY26, the bank reported a cash net profit after tax (NPAT) of approximately $2.6 billion, reflecting a year-on-year growth of 2% and a 1% growth compared to the FY25 second half average [2] - Operating income grew by 3%, driven by increases in lending and deposit volumes, higher non-interest income, and an additional 1.5 days in the quarter [2] Lending and Deposits - The bank achieved solid loan growth, with business lending increasing by 10.4%, household deposits by 9.5%, and home lending by 6.1% [3] - The net interest margin (NIM) decreased due to a mix of strong growth in lower-yielding liquid assets and institutional repos [3] Operating Expenses and Loan Quality - Operating expenses rose by 4% (excluding restructuring and notable items) due to wage and IT vendor inflation [4] - Loan impairment expenses were reported at $220 million, with provisions remaining broadly flat; lending quality was described as "sound" with lower consumer arrears and a decrease in home loan arrears by approximately 4 basis points to 0.66% [4] Market Outlook - The bank needs to generate growth beyond low single digits to positively impact its share price; while solid lending growth is noted, expenses are also increasing significantly [5] - Current valuation at 23 times FY26 projected profit does not appear attractive given the 2% growth rate; stronger growth is desired by shareholders [5][6] - Competition in the sector is strong, but the bank maintains an advantage by capturing borrowers through its own channels rather than relying heavily on mortgage brokers [6]