Company Interview / CBA banking on AI as housing growth cools

Key points:

CBA cash profit up 7% to $10.9 billion with higher impairments and costs Housing credit growth expected to slow, with loan applications down 15% since the Budget Technology and AI spend of $2.4 billion aimed at digital innovation, fraud and cyber protection

Commonwealth Bank of Australia (ASX:CBA) reports a 7% rise in full-year cash profit to $10.9 billion, with CEO Matt Comyn stating this outcome reflects strong credit growth across the economy and solid performance in all core businesses. Comyn notes that CBA is achieving system-level growth across its five main divisions for the first time, although higher operating costs and a 9% lift in loan impairment expenses to $788 million weigh on the result. He highlights a fully franked final dividend of $2.70 per share, taking the full-year payout to $5.05, as part of a focus on sustainable shareholder returns.

Comyn states that housing credit growth is set to soften to around 4–5% in 2027, with loan applications down about 15% since the Federal Budget and national house prices having peaked earlier in the year. He points to rising arrears in personal and home lending and some pockets of stress in business banking, though he still characterises overall credit quality as benign, underpinned by a resilient labour market.

On strategy, Comyn emphasises continued heavy investment in technology and AI, with annual spend of about $2.4 billion. He argues this delivers better digital services, improved fraud and cyber protection, and productivity gains, while acknowledging competitive pressure on net interest margins remains intense.