Commonwealth Bank of Australia

XMUN:CWW

Profit Growth: Cash net profit rose 6% compared to the prior period, with both statutory and cash profits totaling around $5.4 billion.

Dividend Increase: Interim dividend up $0.10 to $2.35 per share, fully franked, marking the 11th consecutive period of DRP neutralization.

Strong Deposit and Lending Growth: Deposit balances increased by $44 billion and mortgage balances grew by $45 billion (7%), with business lending up 12% at 1.3x system.

Stable Margins: Net interest margin fell slightly by 4 bps in the half but improved in the December quarter, helped by higher swap rates.

Expense Management: Operating expenses rose 5.5%, mainly from inflation, tech investment, and resilience spending; productivity initiatives saved $222 million.

Credit Quality: Loan impairment expense remained low at $319 million, with benign credit conditions and strong provisioning ($6.3 billion in total provisions).

Capital Strength: CET1 capital ratio steady at 12.3%, $10 billion above regulatory minimums, with 79% deposit funding.

Guidance & Outlook: Management expects continued high credit growth, ongoing investment in technology/AI, and a focus on sustainable returns despite higher rates and competition.