CBA says profits steady in first quarter of FY25, eyeing slow inflation moderation

Commonwealth Bank (ASX:CBA) has reported a cash NPAT (net profit after tax) of approximately $2.5 billion in the first quarter of the 2025 fiscal year, with this being a 5% rise on the 2H24 quarterly average, although flat compared to prior comparative quarter.

Operating income also rose during the quarter – by 3.5% – while inflation pushed operating costs up 3% for the period, and operating performance being up 5% on the 2H24 quarterly average.

The bank said that volume growth was seen in home lending and household deposits during the period, with retail bank transactions also on the increase – as an additional 121,000 accounts were added during the quarter, based on continued non-migrant and migrant account openings.

Household deposits grew $14.9 billion in the quarter.

CBA was also experiencing positive movement when it came to home loans – which grew $8.6 billion at 1.3x system for the three months to September 2024, as the bank focused on retention of current clients and improved acquisition volumes.

Looking at business flow for the quarter, 66% of this came from proprietary mix for home loans.

CEO Matt Comyn said the cost-of-living crisis faced by Australian consumers was a factor the bank was aware of in its delivery to customers.

“These results demonstrate ongoing focus on delivering for our customers, and disciplined operational and strategic execution,” he said.

“Many Australians continue to be challenged by cost-of-living pressures. We have continued to support our customers, invest in our franchise, and provide strength and stability for the broader economy.”

Mr Comyn added that he was ultimately optimistic on the health of the Australian economy, and its overall outlook, but headwinds were still present.

“Inflation is moderating, but at a slowing pace, and global geopolitical tensions are creating uncertainty,” he said.

“Growth in the Australian economy remains slow, as higher rates continue to weigh on consumer demand and bring inflation back to the target range.”

CBA has been trading at $150.25.

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