Commonwealth Bank reports record A$11 billion annual profit

Commonwealth Bank of Australia (CBA) has reported record annual cash profits for the 2026 financial year, reaching approximately A$11 billion. This represents a 7% increase in cash net profit after tax compared to the previous year, driven by growth in home, business, and consumer lending portfolios.

Despite the record earnings, the bank issued a cautious economic outlook. CBA reported that new mortgage applications have fallen 15% since the May budget, a decline attributed to higher interest rates, inflation, and changes to tax concessions for property investors. The bank noted that while 85% of mortgage customers remain ahead on repayments, there are visible pockets of customer stress.

CBA has increased its provisions for bad and doubtful loans by 9% to A$788 million, citing macroeconomic uncertainty and cost-of-living pressures. The bank is currently providing hardship assistance to approximately 147,000 borrowers. Chief Executive Matt Comyn noted that while the economy has remained resilient due to low unemployment, economic growth is slowing as the effects of monetary tightening become more pronounced.