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Commonwealth Bank posts record $10.25bn profit and reveals plan to clamp down on coal lending Commonwealth Bank urged to repay fees of 2 million low-income customers after posting record profit
(about 7 hours later)
Australia’s biggest bank delivers bumper payout to shareholders as CBA vows to end lending to coal companies with no net zero plansAustralia’s biggest bank delivers bumper payout to shareholders as CBA vows to end lending to coal companies with no net zero plans
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Commonwealth Bank has posted a record cash profit while announcing it will cut off lending to coal companies without net zero emissions plans. Commonwealth Bank has posted a record cash profit, sparking renewed calls for Australia’s biggest bank to repay more than 2 million low-income customers $270m in fees – something it has refused to do.
Australia’s biggest bank recorded $10.25bn in annual cash profits for the year to June – a 4% lift on the previous year – and delivered a bumper $2.60 payout per share to shareholders. The Commonwealth Bank recorded $10.25bn in annual cash profits for the year to June – a 4% lift on the previous year – and delivered a bumper $2.60 payout per share to shareholders.
CBA announced the results in its 2025 annual report on Wednesday alongside its updated environment and social policies, where it revealed it would impose further climate requirements on coalmining clients. CBA announced the results in its 2025 annual report on Wednesday alongside its updated environment and social policies, where it also revealed it would impose further climate requirements on coalmining clients.
Thermal coalminers will not be permitted to borrow from the bank unless they are aiming to reach net zero emissions by 2050, with CBA imposing further decarbonisation and transparency requirements.Thermal coalminers will not be permitted to borrow from the bank unless they are aiming to reach net zero emissions by 2050, with CBA imposing further decarbonisation and transparency requirements.
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The industry had access to about $660m in lending facilities with CBA in 2023 and 2024, the bank said. About $1.2bn of CBA finance was exposed to the thermal coal industry at the end of June. About $1.2bn of CBA finance was exposed to the thermal coal industry at the end of June.
CBA has imposed energy transition plan requirements on oil and gas companies and producers of the other main black coal product, metallurgical coal, since 2023.CBA has imposed energy transition plan requirements on oil and gas companies and producers of the other main black coal product, metallurgical coal, since 2023.
Heightened requirements for lending would make it much harder for coal companies to borrow from the bank, according to Morgan Pickett, an analyst at climate advocacy group Market Forces.Heightened requirements for lending would make it much harder for coal companies to borrow from the bank, according to Morgan Pickett, an analyst at climate advocacy group Market Forces.
“Australia’s biggest bank has officially ended any new finance for coal, whether for power or making steel, unless it’s proven to be compatible with a safe and livable climate,” Pickett said.“Australia’s biggest bank has officially ended any new finance for coal, whether for power or making steel, unless it’s proven to be compatible with a safe and livable climate,” Pickett said.
“It’s another nail in the coffin for coal.” The profit announcement also amplified calls for CBA to repay more than 2 million low-income customers after charging them fees, something it declined to do in July.
Tighter restrictions on coal lending came after Australian households took out an additional $34bn in home loans, up 7% from June 2024 to June 2025. Personal loans also picked up by $400m and business lending rose $16bn over the year. A petition from consumer advocacy group Choice demanding repayment has attracted over 20,000 signatures.
The share of customers behind on home loan payments by 90 days or more rose to 0.7% over the first half of 2025, but CBA said that had now stopped rising. “These are some of the most financially vulnerable people and the least able to afford to line the bank’s pockets,” Choice’s Andy Kelly said.
Easing pressure on mortgage holders helped the bank save $76m, with impaired or unpaid loans costing CBA $726m in the year to June, down from the previous year’s $802m. The Australian Securities and Investments Commission in 2024 found four banks had charged high fees to people entitled to low-fee accounts.
More customers are ahead on their minimum monthly loan repayments, with the share rising to 85% in June compared with just under 80% the previous year. Commonwealth Bank made goodwill payments of $25m to nearly 90,000 customers, while ANZ, Bendigo Bank and Westpac also paid $8m to over 55,000 customers.
“Pleasingly, many households have seen a rise in disposable incomes due to the recent relief from reduced interest rates, lower inflation and tax cuts,” CBA’s chief executive, Matt Comyn, said. In July, ASIC announced those three banks would make additional refunds. However, CBA told the corporate regulator it would not, despite charging $270m in fees to a further 2.2 million low-income customers from 2019 to 2024.
A CBA spokesperson said at the time the fees had been disclosed to the customers, who benefitted from the flexibility of high-fee accounts and had a range of income and wealth levels.
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Households deposited an additional $34bn in CBA accounts over the year to June, with savings deposits up 10% over the year and transaction account deposits, which do not receive interest, up 11%. The report also showed Australian households took out an additional $34bn in home loans, up 7% from June 2024 to June 2025. Personal loans also picked up by $400m and business lending rose $16bn over the year.
The gap between the interest CBA pays deposit holders and the interest it receives from borrowers widened to a net interest margin of 2.08%, supporting the record profits. The share of customers who were 90 or more days behind on home loan payments steadied at 0.7% in June, which helped cut CBA’s losses on impaired or unpaid loans by a tenth, to $726m annually.
However, household and business customers saw the gap between loans and deposits narrow over the year, by 0.03 and 0.04 percentage points respectively, which the report attributed to increased competition with other banks to offer better mortgage and savings interest rates. More customers are ahead on their minimum monthly loan repayments, with the share rising to 85% in June compared with just under 80% the previous year.
Alan Docherty, CBA’s chief financial officer, said nearly 90% of savers with conditional rate account were getting the full interest rate. “Pleasingly, many households have seen a rise in disposable incomes due to the recent relief from reduced interest rates, lower inflation and tax cuts,” CBA’s chief executive, Matt Comyn, said.
Households deposited an additional $34bn in CBA accounts over the year to June.Household and business customers saw the gap between loans and deposits narrow over the year, by 0.03 and 0.04 percentage points respectively, even though CBA’s overall net interest margin widened, helping it achieve record profit.
Alan Docherty, CBA’s chief financial officer, said increased competition from other banks had forced CBA to offer lower mortgage interest rates and higher savings rates.
The bank delivered shareholders a dividend payout of $2.60 per share, to a total of $4.85 over the last 12 months, up from the $4.65 it paid in 2024, which will be paid to more than 800,000 direct shareholders.The bank delivered shareholders a dividend payout of $2.60 per share, to a total of $4.85 over the last 12 months, up from the $4.65 it paid in 2024, which will be paid to more than 800,000 direct shareholders.
Investors sold out of the bank after results were published, sending the price falling from nearly $178 to $169, which if sustained could be the stock’s biggest one-day fall since early 2023. Investors sold out of the bank after results were published, sending the price falling from nearly $178 to $169 by Wednesday afternoon, the stock’s biggest one-day fall since markets panicked in August 2024.
The value of CBA shares had risen greatly over the year to August, from $134 a year ago to a peak of $191 in June. Analysts have persistently said it is overvalued, UBS earlier in August saying the stock’s underlying value was closer to $120.