Commonwealth Bank of Australia (CBA) has reported a $10.3 billion cash profit for the 2024/25 financial year, up 4 percent on the prior period, citing lending growth and stable margins as key drivers.
The bank said recent interest rate cuts, tax relief, and easing inflation have given households more disposable income, supporting spending and mortgage repayments.
Its statutory net profit rose 8 percent to $10.1 billion, with the stronger bottom line also supported by lower loan impairment charges, despite a 6 percent jump in operating costs to $12.9 billion.
The bank will pay a final dividend of $2.60 per share, taking the total annual payout to $4.85, up 4 percent from last year.
CEO Matt Comyn said CBA’s “prudent balance sheet” had helped it withstand a year marked by heightened global uncertainty and strong domestic competition.
“Many households have seen a rise in disposable incomes due to the recent relief from reduced interest rates, lower inflation, and tax cuts,” he said.
The results come a day after the Reserve Bank of Australia (RBA) announced its third rate cut for the year, bringing the total rate reductions to 75 basis points.
Spending Big on Security and Service
Comyn acknowledged the rise in expenses, attributing the increase to inflation, a $900 million technology spend aimed at combating scams and fraud, and investment in more frontline lenders.
Despite the higher cost base, he said the bank was committed to helping customers manage cost-of-living pressures, noting it had arranged 139,000 tailored repayment plans for households facing mortgage or consumer finance strain.
He added that while the operating environment remained challenging, the Australian economy had shown resilience thanks to a strong labour market, steady immigration, and continued public sector investment.
“We will play our part to help the nation prosper by lending to productive parts of the economy, advocating for national policy settings that help build a brighter future for all Australians,” Comyn said.
The RBA struck a similar note of caution, noting there is now greater clarity around U.S. tariffs and global policy responses, which makes extreme outcomes less likely.
Even so, it warned that trade developments may still dampen global economic activity and that lingering uncertainty could prompt households and businesses to postpone spending.
