Commonwealth Bank of Australia, the country's largest lender, reported a full-year cash net profit after tax of A$11 billion for the 2026 financial year, an increase of 7% on the previous year, according to its ASX results announcement.
Pre-provision profit rose 6% year on year to A$16.5 billion, while return on equity stood at 14.0%. Operating income was up 6% year on year, supported by customer and volume growth and a broadly stable underlying net interest margin.
PRE-PROVISION PROFIT UP 6 PERCENT
The bank said the 6% rise in pre-provision profit reflected solid operational performance across all of its domestic businesses. CBA said it grew at or above system in each of its five core domestic product categories in FY26: home lending, business lending, consumer finance, household deposits and business deposits, the first time any major Australian bank had done so in the past 15 years.
Return on equity rose 50 basis points to 14.0%, which the bank described as peer leading. Net interest margin was 2.05%, with underlying margins broadly stable.
CBA said it remains the main financial institution for one in three Australians and one in four Australian businesses. Investment spend rose 6% to A$2.4 billion, reflecting continued investment in technology infrastructure, modernisation and AI capabilities.
CUSTOMER AND VOLUME GROWTH SUPPORT RESULT
The bank said net profit was supported by lending volume growth in its core businesses, with the underlying net interest margin broadly stable, partly offset by higher operating expenses and a higher loan impairment expense.
CBA said housing activity had softened from a high base and that economic growth was slowing, with higher interest rates and inflation placing uneven pressure on household incomes and economic activity. Loan impairment expense rose 9% to A$788 million, and home loan arrears increased to 0.73%.
Its CET1 ratio of 12.0% was well above APRA's minimum regulatory requirement of 10.25%.
The bank published full-year results, an ASX profit announcement and an accompanying presentation on its investor relations website. The Board determined a final dividend of A$2.70 per share, fully franked, taking the full-year dividend to A$5.05 per share, a payout ratio of 77% of cash profit. CBA's major peers, which have September financial year-ends, are due to report full-year results later in the year.