Commonwealth Bank of Australia FY profit rises to record, outlook cautious

Commonwealth Bank of Australia (CBA) reported a record annual profit of A$10.98 billion for the year ending June 30, 2026, driven by robust personal and corporate lending volumes. This marks a significant increase from A$10.25 billion the previous year. The bank's net interest income rose by 7% year-on-year to A$25.59 billion, influenced by heightened lending activity and the Reserve Bank of Australia's aggressive interest rate hikes in 2026.

Despite the impressive profit figures, CBA expressed a cautious outlook due to anticipated slowing of Australian economic activity, attributed to higher interest rates and disparities in household incomes. The bank increased its provision for bad loans by 9% to A$788 million, reflecting increased geopolitical risk and macroeconomic uncertainty. Additionally, CBA's net interest margin declined by 3 basis points to 2.05% compared to the previous year.

As part of its financial strategy, CBA declared a final dividend of A$2.70 per share, up from A$2.60 in the prior year.