CBA posts half-yearly profit of $5.1b, forecasts household relief

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The Commonwealth Bank has reported a half-yearly net profit of $5.1 billion as chief executive Matt Comyn forecasts further relief for households throughout this year.

The figure has increased from the previous half-yearly result of $4.8 billion and two per cent year-on-year, according to the bank, which has cited growth in its core business and lower loan impairment costs in an ASX announcement today.

The profit was partly offset by higher running costs due to inflation and an increase in investment spending.

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"We've been able to produce strong financial outcomes for our shareholders by backing our customers and putting a lot of effort into our franchise, even though the economy hasn't been doing so well," Comyn said.

The bank's annual net profit after tax in 2024 was $9.4 billion.

The bank observed that its younger customers were making sacrifices as the cost of living continued to have a significant impact on household budgets.

The private sector is experiencing sluggish growth, immigration is slowing down and geopolitical uncertainties persist.

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Despite the gloomy financial outlook, Comyn was still upbeat about the year ahead after inflation dropped inside its target range to 2.4 per cent in the December quarter.

"However, underlying inflation is now heading towards our target range and we're tipping Australia will follow other countries overseas with a cycle of interest rate cuts starting in 2025," he said.

This should bring some relief to a lot of homes and give businesses more confidence.

A strong labour market and ongoing government spending on infrastructure also give reason to be hopeful about Australia's domestic economy outlook.

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