The only thing that puzzles us is the share price
Commonwealth Bank’s (ASX: CBA) fiscal 2025 profit increased 4% to a record $10.3 billion. Loan growth of 4% and improved net interest margins, or NIMs, more than offset 6% expense growth. Lower loan impairment expenses also contributed.
Why it matters: The result is largely as expected, and we maintain our medium-term forecasts. NIM of 2.08% was flat half on half, holding up amid lending and deposit competition, and supported by the bank writing more loans directly as opposed to using less profitable third-party brokers.
- We are positive on the outlook, summed up by forecast return on equity of 16% in fiscal 2030 compared with 13.5% this year. We forecast average annual earnings growth of 5.5% over the next five years, driven by loan…
