9% rise in loan impairment charges not hurting CBA financially

CBA's full-year results reveal an incredibly strong underlying banking franchise, with cash net profit after tax (NPAT) rising 7% to nearly $11 billion, despite operating costs increasing 6% and loan impairment expenses rising 9%.

The return on equity (ROE) of 14% demonstrates CBA's strength relative to the other major banks. On Monday, Westpac's quarterly financial update reported an ROE of 10%.

The key numbers from CBA's full-year results are below, along with a brief interpretation.

FY26 Results Snapshot
Indicator	FY26	Change	Interpretation
Cash NPAT	$10.982bn	+7%	Very strong
Statutory NPAT	$10.866bn	+7%	Very strong
Pre-provision profit	$16.469bn	+6%	Core earnings strong
NIM	2.05%	-3bp	Remarkably resilient given competition
ROE	14.0%	+50bp	Excellent
Dividend	$5.05	+4%	Strong income result
Operating expenses	$13.755bn	+6%	Main earnings pressure
Loan impairment expense	$788m	+9%	Rising, but still low
Deposit funding	79%	+1ppt	Funding strength
CET1	12.0%	-30bp	Still comfortably capitalised