CBA posts $7.62b full-year profit but logs higher loan impairments

Operating expenses rose 6% in FY2026.

Commonwealth Bank of Australia (CBA) has reported net profit after tax of $7.62b (A$10.811b) for the full-year period that ended on 30 June 2026, 8% higher than the previous year.

Return on equity rose to 14% for FY2026 compared to a year earlier, according to the bank’s profit announcement.

Dividend is A$5.05 per share, up 4% from FY2025. Final dividend is A$2.7 per share, and the full-year dividend payout ratio is 77% of the cash net profit after tax, within CBA’s target payout range of 70% to 80%.

CBA’s investment spend increased 6% to $1.69b (A$2.4b).

Net interest margin is 2.05%, 3 basis points lower than in FY2025.

Operating expenses rose 6% to $9.7b (A$13.755b) compared to a year ago, and cost-to-income ratio is 45.5%.

CBA said that the higher expenses was due to inflation, investment in technology, as well as fraud, scams, and financial crime. This was partly offset by favorable foreign exchange.

Loan impairment expense rose 9% to A$788m, with CBA citing portfolio growth, cost-of-living pressures, and increased risks tied to geopolitics and macroeconomic uncertainty.

Home and personal loan arrears in CBA increased to 0.73% and 1.72%, respectively, the bank said.

CBA said that it has provided over 147,000 tailored payment arrangement for customers in need of support, and helped buy over 150,000 homes during the fiscal year.