CBA Posts Record $5.45bn Profit as Investors Dominate Housing Market

The Commonwealth Bank of Australia (CBA) announced a record half-year cash profit of $5.45 billion, driven by strong performance in the housing market and a surge in investor lending. The results, released on Wednesday, exceeded expectations, prompting a 7% jump in CBA shares.

The bank’s cash profit represents a 6% increase compared to the same period a year ago. CBA is currently settling an average of over 3,000 housing loans each week, reflecting robust demand and rising property prices across much of Australia. The bank reported home loan balances increased by 7% year-over-year, reaching $622 billion, with 97% of mortgage holders also maintaining a CBA transaction account.

A key driver of the bank’s success is the increasing dominance of investors in the housing market. Investor lending now accounts for 43% of new business, up from 37% two years ago. Conversely, lending to owner-occupiers has decreased as a proportion of the bank’s loan book. This trend highlights a growing disparity, with investors routinely outbidding first-home buyers in a tight market, exacerbating wealth inequality.

The strong financial performance has not gone without criticism. The Finance Sector Union (FSU) has voiced concerns about rising workloads and increased automation within the bank, with a recent survey revealing that 72% of CBA workers are worried about job security due to offshoring and the expansion of artificial intelligence.

CBA’s chief executive, Matt Comyn, acknowledged the pressures on households but expressed optimism about the Australian economy. The bank announced an interim dividend of $2.35 per share, an increase of $0.10 from the previous year. The bank also reported a decrease in mortgage arrears as a percentage of its total mortgage book, attributed to recent interest rate reductions and tax cuts.

However, the impact of last week’s interest rate hike has yet to be fully reflected in mortgage repayment data, and arrears levels remain elevated. This suggests potential challenges ahead as households adjust to higher borrowing costs.

The bank’s results also prompted commentary on the Reserve Bank of Australia’s (RBA) assessment of the housing market. Andrew Hauser, the RBA’s deputy governor, admitted that the central bank may have “missed” the extent of the surge in lending following last year’s interest rate cuts. He noted that credit growth had remained accessible even after the RBA recognized lending was too cheap and subsequently raised interest rates.

According to data from the Australian Bureau of Statistics, investors accounted for two in five home loans issued in the final three months of 2025, receiving 60,445 loans totaling nearly $43 billion. This figure significantly exceeded the 57,282 loans granted to existing owner-occupiers and nearly doubled the number of loans issued to first-home buyers, who benefited from the government’s 5% deposit scheme.

The surge in lending occurred despite new limits on borrowing, implemented by the prudential regulator on February 1st, which capped new loans to customers with high debt-to-income ratios at 20% of total new lending. Hauser praised these measures, stating they allow banks to continue lending while acknowledging the potential for unsustainable credit growth.

CBA’s statutory net profit after tax (NPAT) from continuing operations for the half year ended December 31, 2024 increased by $305 million, or 6%, to $5.142 billion.