Commonwealth Bank (CBA) has posted an unaudited cash net profit after tax (NPAT) of $2.5 billion for the quarter ended 30 September (1Q25).
In a listing to the ASX on Wednesday, CBA said the quarterly result was up 5 per cent on 2H24, but flat on the prior corresponding period.
Operating income gained 3.5 per cent over 1Q25, driven by one additional day in the quarter, profitable volume growth across core lending and deposit products, as well as the timing of dividends received from minority investments.
Moreover, net interest income was 3.5 per cent higher, with the additional day, volume growth, and earnings on replicating portfolio and equity hedges, partly offset by deposit price competition, according to the bank.
“The large build-up of liquid assets to fully repay the RBA Term Funding Facility in 2H24 caused volatility in the headline margin. Excluding liquids, the underlying margin was broadly stable in the quarter,” CBA clarified on Wednesday.
Commenting on the quarter, chief executive Matt Comyn said the results demonstrate the bank’s ongoing focus on delivering for its customers, alongside CBA’s “disciplined” operational and strategic execution.
“Many Australians continue to be challenged by cost of living pressures. We have continued to support our customers, invest in our franchise, and provide strength and stability for the broader economy,” Comyn said on Wednesday.
CBA reported that its overall operating performance was up five per cent on the 2H24 quarterly average, and up one per cent on 1Q24. Operating expenses increased by 3 per cent due to wage inflation and increased investment spend.
The CEO also said the bank has maintained strong balance sheet settings over the period.
“Our CET1 capital ratio remains well above the minimum regulatory requirement. We have maintained provision coverage levels. We have made good progress on our FY25 funding requirements with $11 billion in long-term wholesale funding raised to date, so we can play our part in supporting economic growth by lending to productive parts of the economy,” he said.
According to Comyn, these factors supported the payment of $4.2 billion in dividends during the quarter.
Moreover, year-on-year volume growth was driven by a 9.9 per cent increase in business lending, a 6.5 per cent rise in household deposits and a 4.5 per cent lift in home lending.
Looking ahead, Comyn underscored that while inflation is moderating, it’s doing so at a slowing pace, and global geopolitical tensions are creating uncertainty.
“Growth in the Australian economy remains slow, as higher rates continue to weigh on consumer demand and bring inflation back to the target range,” he said.
“We remain optimistic on the overall outlook and the Australian economy remains fundamentally sound. We remain focused on supporting our customers, investing for the future, generating sustainable returns for our shareholders, and providing strength and stability for the broader economy to achieve a brighter future for all.”
