Commonwealth Bank of Australia (CBA) H2 2024 earnings summary

Executive summary

• Maintained focus on customer support, community protection, and economic stability, providing 132,000 tailored payment arrangements and expanding no-interest credit access to over 6 million Australians.

• Cash NPAT down 2% to $9.8bn, statutory NPAT down 6% to $9.5bn for FY24, with income flat and higher expenses as margins stabilised.

• Maintained sector-leading ROE (13.6%), strong CET1 capital ratio (12.3%), and increased dividend per share to $4.65 (+15c vs FY23).

• Supported customers with tailored payment arrangements, reduced scam losses by over 50%, and returned $8bn to shareholders.

• Maintained #1 market share in retail and business transaction accounts, household deposits, and home lending.

Financial highlights

• Net profit after tax (NPAT) was $9,481m, down 6% on FY23; cash NPAT was $9,836m, down 2% on FY23.

• Operating income flat at $27.2bn (+0.1% vs FY23); operating expenses up 3% to $12.2bn due to inflation and technology investment.

• Net interest margin (NIM) was 1.99%, down 8bps year-over-year.

• Loan impairment expense at $802m (9bps of GLAA), with higher arrears but sound portfolio quality.

• Full-year dividend increased to $4.65 per share, up 3% on FY23, payout ratio 79%.

Outlook and guidance

• Australian economy remains resilient but faces ongoing cost of living pressures, uneven household impacts, and global uncertainty.

• Inflation moderating, but critical to return to target band; unemployment expected to rise modestly.

• Expecting GDP growth recovery and rebound in disposable income over the next 12 months.

• NIM benefit from replicating portfolio unlikely to match 2024 levels in 2025; margin headwinds expected from deposit mix and competition.

• Remain focused on supporting customers, maintaining strong capital, and investing in franchise.