Commonwealth Bank of Australia provides retail and commercial banking services in Australia, New Zealand, and internationally.
FY2026 results
CBA reported full year results before the open on Wednesday 12 August.
| Metric | FY26 | FY25 |
| Cash NPAT | $10,982m | +7% |
| Net interest margin | 2.05% | 2.08% |
| CET1 ratio | 12.0% | 12.3% |
| Full year dividend | $5.05 | +4% |
Cash net profit after tax rose 7 percent to $10,982 million, ahead of the roughly $10.85 billion consensus, and statutory net profit rose 8 percent to $10,911 million. Cash earnings per share rose 44 cents to 657 cents. Operating income rose 6.2 percent to $30,224 million while expenses rose 6 percent to $13,755 million, leaving the headline cost-to-income ratio at 45.5 percent and the underlying ratio at 44.9 percent. Return on equity improved 50 basis points to 14.0 percent, against 8.5 to 10.6 percent for the other majors at their March half.
Margin fell 3 basis points to 2.05 percent across the year, though the second half rose 2 basis points to 2.06 percent. Home loan competition cost 3 basis points and larger liquid asset holdings another 4, offset by 5 basis points from interest rate risk hedging.
Volume growth was the standout. Home loans rose 5.8 percent to $749.2 billion and business loans rose 9.6 percent to $213.4 billion. CBA grew at or above system in all five core domestic categories, which it says no major Australian bank has done in 15 years. Business lending share rose 50 basis points to 18.0 percent, while home loan share on the RBA measure slipped 20 basis points to 24.4 percent.
Loan impairment expense rose 9 percent to $788 million, or 8 basis points of average loans. Home loan arrears at 90 days reached 0.73 percent and personal loan arrears 1.72 percent, both higher, and provisions carry a $2.7 billion buffer above the central scenario.
The capital news was the absence of any. CET1 fell 30 basis points to 12.0 percent, the $1 billion buyback expires today with $300 million completed and will not be extended, and no special dividend was declared. The final dividend rose to $2.70, taking the full year to $5.05 and the payout ratio to 77 percent.
Matt Comyn said growth is slowing, “with higher interest rates and inflation placing uneven pressure on household incomes”. Home loan applications fell 15 percent since May and investor applications 28 percent, following the budget’s removal of investor tax concessions, echoing the 20 percent decline Westpac reported on Monday. Comyn said application volumes appear to have stabilised in recent weeks.
Shares closed at $173.92 on Tuesday. The stock trades near 27 times earnings against about 16 times for the other majors, and every covering analyst rated it a sell going into the result.
