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.

• Kept all regional branches open, invested over AUD 800 million in fraud and cybercrime prevention, reducing scam losses by more than 50%.

• Lent AUD 39 billion to businesses and helped 120,000 households buy homes, with Moody's rating among top five global banks for financial strength.

• Paid AUD 8 billion in dividends, benefiting over 13 million Australians, and maintained #1 market share in retail and business transaction accounts, household deposits, and home lending.

• Supported economic growth with 11% business lending growth and 74% increase in sustainable lending to AUD 7.4 billion.

Financial highlights

• Statutory profit from continuing operations was AUD 9.5 billion; cash profit (NPAT) was AUD 9.8 billion, down 2% year-over-year.

• Operating income was flat at AUD 27.2 billion, with expenses up 3% to AUD 12.2 billion due to inflation and technology investment.

• Net interest margin declined 8bps to 1.99% as deposit competition and funding costs offset hedging returns.

• Full-year dividend increased to AUD 4.65, up AUD 0.15, with payout ratio at 79%.

• Customer deposit funding ratio reached 77%, up from 75% last year.

Outlook and guidance

• Expecting GDP growth recovery and rebound in disposable income over the next 12 months, but anticipate further increases in arrears due to continued pressure on household disposable incomes.

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

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

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

• Bank expects to maintain strong capital and funding positions, targeting a post-dividend CET1 ratio above 11%.