The Commonwealth Bank of Australia (CBA) earned a statutory net profit after tax of A$5.14b (approximately US$3.24b) for the six-month period that ended on 31 December 2024, a 6% year-on-year (YoY) rise compared to H1 2024, its latest financial results showed.

Profits were supported by volume growth in core businesses and a lower loan impairment expense, CBA said.

It was partly offset by higher operating expenses due to inflationary pressures, and a discretionary increase in franchise investment spend.

Net interest margin is 2.08% in H1 2024 that ended on 31 December 2024.

Operation expenses rose 6% YoY to A$6.37b during the same period.

Loan impairment expense declined 23% YoY to A$320m, which CBA attributed to its credit origination and underwriting practices, rising house prices, and lower expected losses within consumer finance.

Deposit funding is reportedly stable at 77% of total funding.

Common Equity Tier 1 (CET1) capital ratio is 12.2% as of end-December 2024. This is well-above the 10.25% minimum regulatory requirement.

CBA’s return on equity (ROE) is 13.7% due to higher profit.