CommBank Australia reports net profit of $3.2b in H1

Interim dividend is A$2.25 per share.

The Commonwealth Bank of Australia (CBA) earned a statutory net profit after tax of A$5.14b (approximately US$3.24b) for the six-month period that ended on 31 December 2024, a 6% year-on-year (YoY) rise compared to H1 2024, its latest financial results showed.

Interim dividend is A$2.25 per share. Dividend payout ratio is 73% of cash NPAT.

Profits were supported by volume growth in core businesses and a lower loan impairment expense, CBA said.

It was partly offset by higher operating expenses due to inflationary pressures, and a discretionary increase in franchise investment spend.

Net interest margin is 2.08% in H1 2024 that ended on 31 December 2024. Operation expenses rose 6% YoY to A$6.37b during the same period.

Loan impairment expense declined 23% YoY to A$320m, which CBA attributed to its credit origination and underwriting practices, rising house prices, and lower expected losses within consumer finance.

Deposit funding is reportedly stable at 77% of total funding.

Common Equity Tier 1 (CET1) capital ratio is 12.2% as of end-December 2024. This is well-above the 10.25% minimum regulatory requirement.

CBA’s return on equity (ROE) is 13.7% due to higher profit.

CBA CEO Matt Comyn noted that the period was “challenging” for its customers, prompting the bank to improve access to hardship assistance, delivery of money management tools, and tailored payment arrangements for those in need.

Looking ahead, Comyn said that the slowing economy and cost of living pressures will weigh on consumer demand and younger customers in particular.

“However underlying inflation is now moderating towards the target range, and we expect Australia will follow offshore economies with an easing cycle starting in 2025. This should provide some relief to many households and improve business confidence,” Comyn said.

Comyn also said that the labour market is strong, and that the level of ongoing public sector infrastructure spending also provide cause for optimism for the domestic economy.

(US$1 = A$1.59; as of 12 February 2025, Google)