Younger Australians have been making “real sacrifices” to deal with persistent cost-of-living pressures and private sector growth is weak, the country’s largest bank has said as it posted its half-year results.

The nation’s largest bank posted a cash profit of $5.13 billion in the six months to December 31, beating expectations and up 2 per cent on the same time last year and up 7 per cent on the second half of the 2024 financial year. CBA will pay an interim dividend of $2.25 per share, up 5 per cent on the prior corresponding period.

Commonwealth Bank chief executive Matt Comyn said the Australian economy had slowed considerably as he delivered the results, but flagged economic relief will finally flow through when the central bank cuts interest rates this year.

“Private sector growth is weak, immigration is starting to slow and geopolitical uncertainties remain,” Comyn said.

“However, underlying inflation is now moderating towards the target range, and we expect Australia will follow offshore economies with an easing cycle starting in 2025.

“The strong labour market and level of ongoing public sector infrastructure spend also provide cause for optimism on the domestic economic outlook.”

Profits were boosted by lower loan impairments, the bank said, supported by rising house prices and lower than expected losses within the consumer finance division.

Australian mortgage holders spent their tax cuts and refunds on repaying their home loans, helping boost the cash profits of the Commonwealth Bank of Australia in the first half of the financial year.

“Consumer arrears remained broadly stable, supported by tax refunds and changes to income rates and thresholds,” CBA said. “Our home lending portfolio remains well-secured and the majority of home lending customers remain in advance of scheduled repayments.”

The bank’s net interest margin, a key measure of profitability, lifted 2 basis points to 2.08 per cent compared to the same time last year.

More to come

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