Commonwealth Bank of Australia

For FY2026, CBA reported statutory profit of $10.9 billion and cash profit of $11 billion, with cash net profit after tax up 7.1% and statutory profit up 8%. Cash earnings per share increased by $0.44, operating income grew 6.2%, operating expenses increased 5.6%, and pre-provision profit rose 6.5%. Loan impairment expense was $788 million, representing an 8 basis point loan loss rate versus 7 basis points in the prior year; total provisions were $6.5 billion, customer deposits grew 8%, and the CET1 ratio was 12.0%. The final dividend was $2.70, taking the full-year dividend to $5.05 per share and representing a 77% payout ratio. Looking ahead, management expects FY2027 cash tax rate to remain at 30%, gross AI benefits to exceed investment levels next year, and annual tech cash spend to be held at $2.4 billion.

Matt Comyn framed the year as evidence that disciplined growth, stable margins, and long-term investment are still working even in a tougher environment. He emphasized that CBA grew at or above system in all five core product categories without sacrificing margin, and said the bank is entering FY2027 from a position of strength but with a sharper focus on execution, customer support, and productivity. His tone was confident but cautious, repeatedly noting higher rates, slower growth, and rising customer stress.

Alan Docherty focused on the mechanics behind the year’s results: operating income up 6.2%, expenses up 5.6%, loan impairment expense at $788 million, and provisions at $6.5 billion. He said underlying margins rose 1 basis point over the half, helped by deposit hedging and mix, while lending margins were pressured by cash rate lag, competition, and product mix. He also noted $400 million in incremental cost savings over the past 12 months, CET1 at 12.0% after a 30 basis point decline, 79% deposit funding, $191 billion of liquid assets, and that the final dividend was $2.70 with a 77% payout ratio.

Analysts focused on mortgage applications, mortgage pricing, broker versus proprietary origination, credit provisioning, AI benefits, and technology amortization. Management said mortgage applications had stabilized and now expects mortgage credit growth in a tighter 4% to 5% range, while stressing it is not shifting to a volume-over-margin strategy despite competitive pricing. On provisions, Alan said the balance of the movement reflected higher collective provisioning, strong credit growth, and a tougher macro outlook, and he said house price changes alone would not move the needle much; on AI, he said gross benefits will come from both cost and revenue effects, with several use cases maturing over the next 12 months.