Commonwealth Bank of Australia (CBA) H1 2026 earnings summary

Executive summary

• Cash net profit after tax rose 6% year-over-year to $5.45bn, with statutory NPAT up 5% to $5.41bn, driven by strong lending and deposit growth, disciplined growth, and operational performance.

• Interim dividend declared at $2.35 per share, fully franked, up 4% year-over-year, with a payout ratio of ~74% of cash NPAT and 11th consecutive DRP neutralisation.

• Return on equity (cash basis) increased to 13.8%, with cost-to-income ratio at 45.9%.

• Maintained strong liquidity, funding, and capital positions, with CET1 ratio at 12.3%, well above regulatory minimums.

• Continued investment in technology, AI, and customer experience, including fraud prevention and digital innovation.

Financial highlights

• Operating income grew 6.6% year-over-year to $15.02bn, with net interest income up 6% and other operating income up 8%.

• Net interest margin declined 4 bpts to 2.04%, impacted by competition and lower Treasury income.

• Operating expenses rose 5% to $6.72bn, mainly due to inflation, technology investment, and customer remediation.

• Loan impairment expense was $319m, flat year-over-year, with provision coverage at 1.55% of credit risk weighted assets.

• Dividend payout ratio around 74% (normalised basis).

Outlook and guidance

• Economic growth is expected to remain resilient, driven by consumer demand and investment in AI and energy infrastructure.

• Inflation is projected to stay above the RBA's target band, with further upward pressure on interest rates likely.

• Management expects continued above-system growth in deposits and lending, supported by strong capital and balance sheet settings.

• Ongoing focus on technology, AI, and digital capabilities to drive customer experience and operational resilience.

• Optimism about economic prospects, with ongoing support for customer financial resilience.