Commonwealth Bank of Australia (CBA) investor relations material

Executive summary

• Cash net profit after tax rose 6% year-over-year to $5.45bn, with statutory NPAT up 5% to $5.41bn, driven by strong operational performance and disciplined growth.

• Interim dividend per share increased by 10c to $2.35, fully franked, with a payout ratio of 72–74% and 11th consecutive DRP neutralisation.

• Return on equity (cash basis) increased 10 bpts to 13.8%, and cost-to-income ratio improved to 45.9%.

• Strong liquidity, funding, and capital positions maintained, with CET1 capital ratio at 12.3%, well above regulatory minimums.

• Market context featured high credit growth, low loan losses, supportive funding markets, and intense competition.

Financial highlights

• Operating income grew 6.6% year-over-year to $15.02bn, with net interest income up 6% and other operating income up 8%.

• Operating expenses rose 5–8% to $6.89bn, mainly due to inflation, technology investment, and customer remediation.

• Loan impairment expense was $319 million, flat year-over-year, with a loan loss rate of 0.06%.

• Net interest margin declined 4 bpts to 2.04%, impacted by competition and higher liquid assets.

• Dividend payout ratio was 72–74% (headline/normalised basis).

Outlook and guidance

• Economic growth is expected to remain resilient, driven by consumer demand and investment in AI and energy infrastructure, but inflation is projected to stay above target, keeping upward pressure on interest rates.

• Management expects continued above-system growth in deposits and lending, supported by strong capital and balance sheet settings.

• Ongoing focus on technology, AI, and digital investment to drive customer experience and operational resilience.

• System credit growth is forecasted between 6% and 8% over the next couple of years, with some moderation if rates rise further.