Commonwealth Bank of Australia (CBA) reported a cash net profit after tax (NPAT) of A$2.6 billion (US$1.69 billion) for the third quarter (Q3) of the 2025 financial year (FY25) as business lending surged.
The cash profit was up 6% on the previous corresponding quarter (pcp) but flat against the FY25 first-half quarterly average.
CBA said business lending continued to grow faster than the system in the quarter, with volumes 9.1% higher than the first-half average, as it continued to focus on growing its business bank franchise.
Operating income was $14.097 billion in the quarter ended 31 March 2025, up 1% on the pcp as a result of lending volume growth and higher trading income, almost offset by two fewer business days in the quarter.
Operating expenses rose 1% as increased investment in technology and frontline staff was partly offset by the impact of the short quarter and the benefits of ongoing productivity initiatives.
Net interest income was 1% higher, as lending volume growth and earnings on replica portfolios and equity hedges were largely offset by deposit competition and the shorter quarter, and it was stable if non-recurring earnings were excluded.
Chief Executive Officer Matt Comyn said CBA’s balance sheet settings remained strong. It maintained strong capital and provisioning levels and successfully completed its FY25 funding tasks during the March quarter.
He said growing pre-provision profits and strong organic capital generation supported strong and sustainable dividends.
“We remain focused on supporting our customers, maintaining consistent and disciplined execution, investing in our franchise and generating sustainable returns for our shareholders,” Comyn said in a statement.
Many households and businesses dealing with cost of living pressures had faced a challenging period and geopolitical and macroeconomic uncertainty could slow the economy but Australia was in a relatively strong position.
CBA (ASX:CBA) shares closed $1.04 (0.62%) lower at $166.14 on Tuesday, valuing the bank at $278.03 billion and making it Australia’s largest company by market capitalisation.
