CBA FY26 Cash Profit $11.0bn, Up 7%; Dividend $5.05

Commonwealth Bank of Australia (ASX:CBA) released its results for the year ended 30 June 2026, reporting cash net profit after tax of $10,982 million, which the bank said increased 7% on FY25, and statutory net profit after tax of $10,911 million. Pre-provision profit increased 6% to $16,469 million and return on equity rose 50 basis points to 14.0%. Operating income increased 6%, which CBA attributed to customer and volume growth and a broadly stable underlying net interest margin. Net interest margin was 2.05%; the bank said margins were broadly stable excluding growth in liquid assets and institutional reverse sale and repurchase agreements, which have broadly neutral impacts on net interest income, with underlying margins supported by higher earnings on the replicating portfolio and capital hedges and by the mix impact of growth in business lending and deposits, largely offset by lower lending margins. Operating expenses were $13,755 million, a cost-to-income ratio of 45.5%, and increased 6% on inflation and investment in technology, fraud, scams and financial crime, partly offset by productivity initiatives and favourable foreign exchange. Investment spend rose 6% to $2,428 million and is expected to be maintained at $2.4 billion in FY27. CBA said it grew at or above system in each of its five core domestic product categories, which it described as the first time it has achieved this and the first time any major Australian bank has done so in the past 15 years.

Loan impairment expense was $788 million, a loan loss rate of 8 basis points of average gross loans and acceptances, and CBA said the expense increased mainly reflecting portfolio growth, cost-of-living pressures and increased geopolitical risk and macroeconomic uncertainty. Home loan and personal loan arrears increased to 0.73% and 1.72% respectively, while the bank said realised credit losses remained low and overall credit quality remained sound; provision coverage was 1.53% of credit risk weighted assets, carrying a $2.7 billion buffer relative to losses expected under CBA's central economic scenario. The Common Equity Tier 1 capital ratio was 12.0% on an APRA Level 2 basis and 18.3% on an international basis, above APRA's minimum regulatory requirement of 10.25%. The $1 billion on-market share buy-back, of which $300 million has been completed, expires on 12 August 2026 and will not be extended. The deposit funding ratio was 79%, with a quarterly average liquidity coverage ratio of 132% and a spot net stable funding ratio of 115%. The Board determined a final dividend of $2.70 per share fully franked, taking the FY26 dividend to $5.05 per share, a payout ratio of 77% of cash NPAT and within the 70-80% target range. On the outlook, Chief Executive Officer Matt Comyn said the Australian economy has remained resilient but growth is slowing, with higher interest rates and inflation placing uneven pressure on household incomes and economic activity, and that housing activity has softened from a high base with application volumes appearing to have stabilised in recent weeks. Figures are presented on a continuing operations basis with comparatives restated.