CBA Delivers Record Profits and Tightens Coal Lending Rules
The Commonwealth Bank of Australia has just posted a record-breaking cash profit, and while that’s making waves in the finance world, the story is about more than just big numbers. For the year ending June 2025, the bank recorded $10.25 billion in annual cash profits — a solid 4% increase from last year — and announced a generous $2.60 per share dividend for its shareholders, bringing the total payout for the past 12 months to $4.85. That’s going to be welcomed by over 800,000 direct shareholders.
But CBA’s leadership, headed by CEO Matt Comyn, isn’t simply celebrating the results. Comyn described the bank as being at an “inflection point” — a moment that will shape how the institution operates over the next decade, not just the next few reporting periods. Part of that vision involves a decisive environmental policy shift. The bank revealed it will no longer lend to thermal coal companies unless they have clear, credible plans to reach net zero emissions by 2050. Additional requirements for transparency and decarbonisation are being put in place, extending the pressure already applied to oil, gas, and metallurgical coal producers since 2023.
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This is no small move. At the end of June, CBA had about $1.2 billion in exposure to the thermal coal industry. Industry insiders note that stricter lending conditions could make it significantly harder for coal companies to secure funding. Climate advocates, like Morgan Pickett from Market Forces, called the decision “another nail in the coffin for coal.”
Meanwhile, household and business activity has been buzzing. Over the past year, Australians took out $34 billion more in home loans — a 7% jump from the previous year — alongside $16 billion more in business lending and $400 million more in personal loans. While a small share of borrowers remain behind on payments, CBA says that trend has stabilised, and more customers are now ahead on their minimum repayments than last year. Lower interest rates, easing inflation, and recent tax cuts have boosted disposable incomes for many households.
On the deposit side, Australians added $34 billion more to their CBA accounts over the year, with savings up 10% and everyday transaction balances up 11%. The bank’s net interest margin — the difference between what it earns from borrowers and pays depositors — held at 2.08%, underpinning its record profits.
Despite the strong results, the market reaction was cool. CBA’s share price slid from almost $178 to $169 after the announcement, marking what could be its sharpest one-day drop since early 2023. This pullback comes after a stellar run, with the stock having climbed from $134 a year ago to a peak of $191 in June. Analysts have warned the share price may be running ahead of fundamentals, with UBS valuing it closer to $120.
In short, CBA is riding high on record profits, rewarding shareholders, and taking a bold stance on coal lending — a combination that could define its path well into the next decade.
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