Commonwealth Bank of Australia (CBA) H2 2025 earnings summary

Executive summary

• Statutory NPAT rose 7% to AUD 10.1 billion and cash NPAT increased 4.2% to AUD 10.25 billion year-over-year, driven by strong lending growth, disciplined margin management, and stable operating performance.

• Operating income grew 4.8% to AUD 28.5 billion, while operating expenses rose 6–6.4% 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.

• Accelerated technology and AI investment by AUD 300 million, with total investment spend reaching AUD 2.3 billion.

• Maintained strong liquidity, funding, and capital positions, with a CET1 ratio of 12.3%, AUD 10 billion above the regulatory minimum.

Financial highlights

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

• Operating income increased 4.8% to AUD 28.5 billion; operating expenses rose 6–6.4% to AUD 13 billion.

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

• Loan impairment expense fell 9–9.5% to AUD 726 million, with a loan loss rate of 7bps.

• Pre-provision profit increased 3.4% year-over-year.

Outlook and guidance

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

• Continued investment in technology and digital capabilities, with a focus on productivity and sustainable shareholder returns.

• 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.