Commonwealth Bank of Australia (CBA) has reported a half-yearly net profit after tax (NPAT) of $5.142 billion, up 6% on last year, driven by volume growth and a decrease in loan impairment expenses.

The bank's pre-provision profit increased by 1% to $7,725 million, which its attributed to solid operational performance across its frontline businesses. CBA's net interest margin (NIM) was reported at 2.08%, with operating expenses increasing by 6% due to inflation and investment in technology infrastructure. Loan impairment expenses decreased by 23%, supported by disciplined credit practices and rising house prices, the bank said.

CBA CEO Matt Comyn highlighted the bank's focus on proactive engagement to support customers during challenging economic conditions.

"It has been another challenging period for many of our customers and we have maintained our focus on proactive engagement to offer a range of support options. This has included improved access to hardship assistance, delivery of money management tools for greater visibility of finances, and tailored payment arrangements for those customers most in need," Comyn stated.

To highlight such contributions back to customers and community, CBA said it had invested $450 million in the first half of 2025 to protect customers against fraud, scams, and financial and cyber crime. The bank's NameCheck tool has been utilised over 80 million times, preventing $650 million in mistaken and scam payments. Additionally, CBA supported 10,737 people experiencing financial abuse through the Financial Independence Hub.

The bank lent $21 billion to businesses and assisted over 70,000 households in purchasing homes in the first half of 2025. CBA also paid over $11 billion in interest to Australian savers during this period. The bank returned $4 billion to shareholders. It's now declared an interim dividend of $2.25 per share, fully franked, with a dividend payout ratio of 73% of cash NPAT.

"Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders, despite the weaker economic backdrop. Our consistent financial performance demonstrates our disciplined operational and strategic execution, and the bank’s deep customer relationships that help us understand needs and risks and deliver superior digital experiences," Comyn continued.

"Our balance sheet settings remain strong, with surplus capital and conservative funding, provisioning and interest rate risk settings. This enables us to support our customers, while lending to productive parts of the economy to stimulate economic growth. We will continue to invest in our franchise, including to protect our communities against fraud, scams, and financial and cyber crime."

Comyn noted the Australian economy had slowed considerably, with cost of living pressures continuing to weigh on consumer demand and younger customers in particular making real sacrifices. "Private sector growth is weak, immigration is starting to slow and geopolitical uncertainties remain," he continued.

According to the financial presentation, disposable income has stabilised, while customers in most age groups except the 25-34 year old bracket shown to be saving more in the October to December quarter compared to April - June last year. The percentage of hardship cases across credit cards, personal loans and home loans also reduced 15% between June and December 2024.

Despite these challenges, Comyn expressed optimism off the back of underlying inflation now moderating towards the target range.

"We expect Australia will follow offshore economies with an easing cycle starting in 2025. This should provide some relief to many households and improve business confidence. The strong labour market and level of ongoing public sector infrastructure spend also provide cause for optimism on the domestic economic outlook," he said.