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Highlights:

  • CBA's FY25 statutory net profit after tax rose 7% year-on-year to AUD 10,133 million, with cash NPAT up 4% to AUD 10,252 million.

  • CBA declared a total fully franked dividend of AUD 4.85 per share for FY25, up 4% from the prior year, with a payout ratio of 79%.

  • Outlook for FY26 anticipates modest economic growth supported by a healthy labour market, steady immigration, and ongoing public sector investment.

Commonwealth Bank of Australia (ASX:CBA) has released its full-year results for FY25 on Wednesday, with the announcement impacting its share price in early trading. CBA shares were down 4% in morning trade to AUD 171.63 following the results.

FY25 Financial Performance

For the year ended 30 June 2025, CBA reported statutory net profit after tax of AUD 10,133 million, an increase of 7% from the prior year. Cash net profit after tax rose 4% to AUD 10,252 million, broadly in line with market expectations of AUD 10,270 million.

The bank attributed the result to lending volume growth in its core operations, a stable underlying net interest margin, and lower loan impairment expenses. These gains were partly offset by higher operating costs arising from inflation and accelerated investment.

The net interest margin for the period was 2.08%, up 9 basis points from the previous year, or 2 basis points on an underlying basis. Excluding the mix effect of lower liquid assets and institutional pooled facilities, margins improved mainly from higher earnings on capital and replicating portfolio hedges. This was partially offset by competitive pressure on deposit pricing.

Dividend Payout

Given the growth in profit, the Board declared a final dividend of AUD 2.60 per share, taking the total fully franked dividend for FY25 to AUD 4.85 per share. This represents a 4% increase compared to the previous year.

The bank’s full-year dividend payout ratio stood at 79% of cash net profit after tax, close to the upper limit of its targeted payout range.

Outlook

According to the bank’s Chief Executive Officer, Matt Comyn, the Australian economy has maintained resilience despite ongoing global uncertainty, supported by factors such as a healthy labour market, steady immigration, and public sector investment. While overall sentiment remains subdued, CBA anticipates modest improvement in economic growth as the year progresses.

The bank intends to support national prosperity by lending to productive sectors, advocating for policy settings aimed at a brighter economic future for Australians, and maintaining conservative financial settings to ensure readiness for a range of economic conditions.

Management expects to continue executing its strategic priorities in FY26, with a focus on capital allocation, maintaining asset quality, and managing cost pressures while seeking growth in key segments.