Commonwealth Bank of Australia

For FY26, statutory profit was $10.9 billion and cash profit was $11 billion. Cash net profit after tax increased 7% and statutory profit increased 8%; cash earnings per share increased by $0.44. Operating income rose 6.2%, operating expenses increased 5.6%, pre-provision profit increased 6.5%, and loan impairment expense was $788 million, equal to an 8 basis point loan loss rate versus 7 basis points in the prior year. The final dividend was $2.70 per share, taking the full-year dividend to $5.05 per share and implying a 77% payout ratio. On the balance sheet, total provisions were $6.5 billion, customer deposits grew 8%, the CET1 ratio was 12.0%, liquidity was $191 billion, and the weighted average maturity of long-term funding was 5.2 years. For FY27, management expects the tax rate to remain at 30%, mortgage credit growth in a tighter 4% to 5% range, and gross benefits from AI to exceed investment levels next financial year.

Matt Comyn framed the year as evidence that CBA can grow the franchise, invest heavily, and keep margins stable at the same time. He emphasized that CBA grew at or above system in all five core product categories for the first time a major Australian bank has done so in 15 years, and he linked that to deep primary customer relationships, digital engagement, and technology investment. His tone was confident but cautious: FY26 was strong, but FY27 starts in a more demanding and less predictable environment, so the focus shifts to execution, productivity, customer protection, and disciplined trade-offs.

Alan Docherty said the FY26 result was driven by 6.2% operating income growth, supported by about $1.6 billion more net interest income and $196 million more other operating income, while underlying operating expenses rose 5.6%. He pointed to $788 million of loan impairment expense, $6.5 billion of total provisions, customer deposits at 79% of funding, and a CET1 ratio of 12.0% after a 30 basis point decline from lending growth and hedging-related RWA effects. He also said CBA realized about $400 million in incremental cost savings over 12 months, expects a 30% tax rate again in FY27, and plans to keep annual cash tech spend at $2.4 billion while aiming for AI gross benefits above investment next year.

Analysts focused on mortgage credit growth, provisioning, mortgage pricing, broker versus proprietary origination, AI benefits, software capitalization, and the impact of state debt or IRRBB on capital. Management said mortgage applications stabilized and now sees mortgage credit growth around 4% to 5%, with demand likely improving later in FY27; on provisions, Alan said CBA had already moved ahead of some industry changes and remains comfortable with provision coverage above the central scenario. On pricing, Matt said CBA is not shifting to prioritize volume over margin, while on AI and software spend, Alan said benefits are coming from a mix of cost savings, productivity, and revenue, with annual cash tech spend held at $2.4 billion. Asked about money laundering concerns, Matt said investigations so far have not identified evidence of professional money laundering or organized crime links.