Commonwealth Bank of Australia (ASX:CBA) Reports Earnings
Financial Performance
Commonwealth Bank of Australia reported an unaudited cash NPAT of approximately $2.6 billion for the quarter, flat on the 1H25 quarterly average and up 6% compared to the prior quarter. Operating income increased by 1%, driven by lending volume growth and higher trading income, offset by two fewer days in the quarter. Operating expenses rose by 1% due to investments in technology and frontline staff.
Loan and Credit Quality
The bank recorded a loan impairment expense of $223 million, with slight increases in consumer arrears and corporate troublesome and non-performing exposures. Portfolio credit quality remained sound. The customer deposit funding ratio stood at 77%, and the bank maintained strong liquidity with an LCR of 133% and an NSFR of 116%.
Funding and Capital
Commonwealth Bank of Australia issued A$36 billion in new long-term wholesale funding across multiple markets. The CET1 (Level 2) ratio improved to 11.9%, up 45 basis points before a $3.8 billion dividend payment to approximately 814,000 shareholders.
Executive Comments
Chief Executive Officer Matt Comyn stated, “We have remained focused on proactively engaging with our customers and investing in our franchise to deliver superior customer experiences, which has resulted in solid results for our shareholders.”
Future Outlook
The bank acknowledges heightened global economic risks but remains confident in Australia’s strong position. Government investments and moderating inflation support the bank’s strategy to continue delivering sustainable returns for shareholders.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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