Commonwealth Bank’s third-quarter profit bolstered hopes that bank margins are stabilising after Australia’s No.1 mortgage lender ditched cashback offers to new borrowers, and denied it was the instigator of Australia’s fierce mortgage war.

CBA’s unaudited third-quarter net profit rose 10 per cent to $2.6 billion from the year-earlier period and firmed 1 per cent against the first half. Chief executive Matt Comyn said investors understand the bank has to defend its market share, but that CBA is not responsible for driving the intense competition smashing margins sector-wide.