Commonwealth Bank (CBA) has announced a cash profit of $5.4 billion for the first half of the financial year. This represents a 6 per cent increase compared to the first six months of the previous financial year and surpasses market expectations. The result was supported by growth in both loans and deposits, reflecting a strengthening Australian economy. Commonwealth Bank is Australia’s largest bank, providing a range of financial services to individuals, businesses, and institutions. The bank operates across retail, business, and institutional banking, as well as wealth management.
In light of the strong performance, CBA will distribute a fully franked interim dividend of $2.35 per share. This dividend represents a 4 per cent increase compared to the prior corresponding period and is also higher than anticipated. The bank’s underlying net interest margin experienced a slight decrease during the half, settling at 2.04 per cent.
The bank attributed this margin compression to heightened competition within the home lending market and reduced income derived from its market activities. Positively, the loan impairment expense decreased, reflecting improved credit quality across the bank’s portfolio.
CBA acknowledged the competitive landscape within the financial system, stating, “We continue to watch the competitive intensity and its implications across the financial system.” The bank added, “We are well-placed to compete effectively and will continue to adjust our settings as appropriate.”
