Commonwealth Bank’s profits rose to $5.4 billion in its first half, as the banking giant expanded its vast portfolio of home loans and deposits while also benefiting from lower bad debts.
CBA on Wednesday said cash net profit rose by 5 per cent for the December half compared with the same half a year earlier, a result that was supported by the bank holding its market share in mortgages and expanding it in deposits and in business banking.
After the Reserve Bank last week raised interest rates for the first time in more than two years, chief executive Matt Comyn said the banking giant thought there would be “upward pressure” on interest rates due to the high rate of inflation in the economy.
“Economic growth strengthened during the half, driven by increases in consumer demand and rising investment in AI and energy infrastructure. Supply side constraints mean that the economy is struggling to meet this increased demand,” Comyn said.
“As a result, inflation is now expected to remain above the Reserve Bank’s target band for some time, placing further upward pressure on interest rates.”
Comyn said CBA customers had been supported lower rates – until recently – and the strong labour market, and the bank reported lower costs for impaired loans and a fall in home loan arrears.
CBA said it would raise its interim dividend by 4 per cent to $2.35. Analysts had expected first-half profits of about $5.2 billion for CBA and a dividend of $2.31.
More to come.
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Clancy Yeates is deputy business editor. He has covered banking and financial services, and was previously national business correspondent in the Canberra bureau.Connect via X or email.
