Commonwealth Bank's Profit Soars to $10.25 Billion, Despite 5% Stock Price Dip

Commonwealth Bank reported a 4% increase in profits to $10.25 billion, despite a 5.3% stock price drop. The bank benefited from business loans and mortgages, while impaired loan charges fell 9%. CEO Matt Comyn's annual income was cut to $7 million, while the bank announced a partnership with OpenAI to introduce AI for customer and staff use, aiming to combat financial scams and improve user experience.

Commonwealth Bank of Australia (CBA) has reported a record cash profit of $10.25 billion for the year ending June 2025, marking a 4% increase from the previous year. This financial performance was driven by robust growth in business loans and mortgages, while impaired loan charges fell by 9%. The bank's net interest margin widened to 2.08%, supporting the record profits [1].

Despite the strong financial results, CBA's share price dropped by 5.3% following the announcement. The stock price fell from nearly $178 to $169, which, if sustained, would be the biggest one-day drop since early 2023 [1].

CBA's chief executive, Matt Comyn, noted that the bank has benefited from increased disposable incomes among households due to reduced interest rates, lower inflation, and tax cuts. Households deposited an additional $34 billion in CBA accounts over the year to June, with savings deposits up 10% and transaction account deposits up 11% [1].

The bank also announced a significant strategic move by partnering with OpenAI to introduce AI for customer and staff use. This initiative aims to combat financial scams and enhance user experience [1]. Additionally, CEO Matt Comyn's annual income was cut to $7 million, reflecting the bank's focus on cost control and efficiency [2].

CBA's decision to impose further climate requirements on coalmining clients has been highlighted as a key factor in the bank's strategic direction. Thermal coalminers will no longer be permitted to borrow from the bank unless they are aiming to reach net zero emissions by 2050 [1]. This move aligns with CBA's commitment to sustainability and environmental responsibility.

In terms of lending, CBA's share of the Australian mortgage market remained stable at 25.3%, while business lending grew at 11%, outpacing overall market growth. The bank ended the year with an 18.9% share of the business-lending market, up from 18.7% a year earlier [2].

References:
[1] https://www.theguardian.com/australia-news/2025/aug/13/cba-record-cash-profit-commonwealth-bank-of-australia
[2] https://www.marketwatch.com/story/commonwealth-bank-lifts-dividend-as-annual-profit-rises-4-2-update-9fa19e91