The Commonwealth Bank of Australia (CBA) on Wednesday posted a profit of AU$2.5 billion for the 2025 financial year’s first quarter, which was up 3.5% from the previous corresponding period in operating income.
CBA’s huge profit could be in part credited to an increase across core lending and deposit products, in addition to minority investments’ dividends, News.com reported.
Retail banking expanded with 121,000 new transaction accounts, while home loans saw an increase of AU$8.6 billion, Reuters reported. Following market trends, household deposits increased by AU$14.9 billion, helping generate a AU$2.5 billion profit that was in line with projections.
There was a small seasonal improvement in past-due unsecured consumer loans, but the number of house loan late payments stayed constant.
CBA’s profit comes as major lenders ANZ and Westpac signal a decrease in stress related to the expense of living. The “peak of the cost of living stress” seemed to have passed in July, according to ANZ’s CEO, thanks to stage three tax cuts that benefited mortgage holders.
“Growth in the Australian economy remains slow as higher rates continue to weigh on consumer demand and bring inflation back to the target range (of between 2% and 3%),” Commonwealth Bank CEO Matt Comyn said, adding the “Australian economy remains fundamentally sound,” he said, per Financial Standard.
Along with a 0.8% increase in its Household Spending Insights Index to 152.5 in October, CBA also reported a slight increase in problematic and impaired assets to AU$8.8 billion, but arrears stayed steady due to tax refunds and adjustments to income tax rates.
