CBA beats ‘weak backdrop’ to see profits leap in unexpectedly strong results

Commonwealth Bank (ASX:CBA) has posted a bumper result for the first half of the 2025 fiscal year, including a 2% rise in profit (cash NPAT: net profit after tax), with the final number coming in at $5.13 billion.

This was beyond what analysts had expected, with CBA explaining its core business had experienced volume growth and that this – as well as a lower loan impairment expense – underpinned the NPAT figure.

Within the core business, Commonwealth said the number of home loans had risen 3% while business and corporate loans were up 2%.

Chief executive officer Matt Comyn said the bank’s performance was particularly good, especially considering the wider economic headwinds right now.

“Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders, despite the weaker economic backdrop,” he said.

“Our consistent financial performance demonstrates our disciplined operational and strategic execution, and the bank’s deep customer relationships that help us understand needs and risks and deliver superior digital experiences.”

Comyn also said inflation was creeping closer to the RBA’s target range, but acknowledged economic conditions had been tough for many Australians.

“The Australian economy has slowed considerably, with cost of living pressures continuing to weigh on consumer demand and younger customers in particular making real sacrifices,” Mr Comyn said.

“Private sector growth is weak, immigration is starting to slow and geopolitical uncertainties
remain.”

CBA reported an interim dividend of $2.25, up 5% from the first half of FY24.

The ‘big four’ bank’s shares have been trading at $162.16.

Join the discussion: See what HotCopper users are saying about Commonwealth Bank and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.