Video courtesy by CBA MEDIA TEAM
Commonwealth Bank recorded Australia's largest banking profit while announcing it will cease lending to coal companies without net zero emissions plans, marking a significant shift in climate policy for the nation's biggest lender.
Financial Performance:
Cash profit of $10.25 billion, up 4% from previous year
Final dividend $2.60 per share, total annual dividend $4.85
Net interest margin widened to 2.08%, supporting record results
Share price fell from $178 to $169 following results announcement
Climate Policy Shift:
Thermal coal miners must demonstrate net zero emissions plans by 2050
$660 million in current lending facilities to thermal coal sector
Total exposure to thermal coal industry reaches $1.2 billion
Policy extends existing requirements for oil and gas companies
Customer Metrics:
Home loan arrears stabilized at 0.7% for customers 90+ days behind
85% of mortgage holders ahead on scheduled repayments
Household deposits increased $34 billion over the year
Personal loans rose $400 million, business lending up $16 billion
Executive Commentary:
Chief Executive Matt Comyn stated: "Many households have seen a rise in disposable incomes due to the recent relief from reduced interest rates, lower inflation and tax cuts."
Chief Financial Officer Alan Docherty noted that nearly 90% of conditional rate account holders receive full interest rates amid increased competition.
Market Analysis:
Loan impairment expense decreased to $726 million from $802 million
Common Equity Tier 1 ratio maintained at 12.3%, above regulatory requirements
Analysts continue questioning stock valuation, with UBS citing $120 underlying value
Climate Impact Assessment:
Morgan Pickett from Market Forces described the policy as "another nail in the coffin for coal," noting it effectively ends new finance for coal projects incompatible with climate targets.
The bank completed $300 million of its announced $1 billion share buyback program, with the period extended 12 months for execution flexibility.
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