Commonwealth Bank of Australia (CBA) H2 2026 earnings summary

Executive summary

• Cash NPAT rose 7% year-over-year to $10,982m ($11bn), driven by strong operating income and disciplined growth across retail, business, and institutional segments, with return on equity at 14.0%.

• Statutory NPAT increased 7.7% to $10,911m, broadly in line with cash NPAT.

• Maintained sector-leading market shares in retail and business, with robust digital engagement and continued material investment in technology and customer experience.

• Maintained leading consumer net promoter score for 44 consecutive months and added 655,000 retail and 90,000 business transaction accounts.

• Provided over 147,000 tailored payment arrangements and invested $1bn in fraud and cyber protection.

Financial highlights

• Operating income grew 6.2% to $30,224m, supported by lending and deposit volume growth and stable margins.

• Net interest margin at 2.05%, down 3bps year-over-year.

• Operating expenses increased 5.8% to $13,755m, reflecting inflation, technology investment, and customer remediation.

• Loan impairment expense rose 8.5% to $788m (8bps loan loss rate), reflecting portfolio growth and macroeconomic uncertainty.

• Final dividend of $2.70 per share, total FY26 dividend $5.05 per share, payout ratio 77%.

Outlook and guidance

• Expect mortgage credit growth in the 4%-5% range for FY 2027, with some volatility but stabilization in applications.

• Gross benefits from AI expected to exceed investment in FY 2027, with ongoing productivity and revenue gains.

• Priorities for FY27 include deepening customer relationships, maintaining volume and margin discipline, and delivering benefits from investments.

• The bank targets a payout ratio of 70-80% of cash NPAT and aims to maintain strong capital and liquidity buffers.

• Economic headwinds include slowing GDP growth, persistent inflation, and softening housing market activity.