Commonwealth Bank of Australia (CBA) H2 2025 earnings summary

Executive summary

• Statutory profit after tax rose 7% to AUD 10.1 billion and cash profit after tax increased 4.2% to AUD 10.25 billion year-over-year, driven by strong lending growth, stable margins, and disciplined management.

• Operating income grew 4.8% to AUD 28.5 billion, while operating expenses increased 6.4% due to technology investment and inflation.

• Paid a fully franked dividend of AUD 4.85 per share, up 4% year-over-year, with a payout ratio of 79% and AUD 8 billion returned to shareholders.

• CET1 capital ratio remained strong at 12.3%, AUD 10 billion above the regulatory minimum, supporting franchise growth and dividends.

• Customer engagement and digital adoption deepened, with over 9 million active app users and leading NPS across segments.

Financial highlights

• Cash NPAT up 4.2% to AUD 10.25 billion and statutory NPAT up 7% to AUD 10.1 billion.

• Operating income increased 4.8% to AUD 28.5 billion; operating expenses rose 6.4% to AUD 13 billion.

• Group net interest margin stable at 2.08%, up 9bps year-over-year.

• Loan impairment expense fell 9.5% to AUD 726 million, with loan loss rate at 7bps and strong credit quality.

• Paid AUD 8 billion in dividends, benefiting over 13 million Australians.

Outlook and guidance

• Economic growth is recovering but remains below trend; inflation is moderating and a modest rate-cutting cycle is underway.

• Consumer confidence is improving, but households remain stretched; competitive intensity in retail banking is expected to persist.

• Continued investment in technology and digital capabilities, with a focus on productivity and long-term benefits from AI.

• Margin outlook for FY 2026 will depend on the extent of rate cuts, competitive dynamics, and wholesale funding spreads.

• Balance sheet set up for long-term resilience, with strong capital and liquidity positions.