The Commonwealth Bank of Australia (CBA) has announced a remarkable half-year cash profit of $5.45 billion, attributed to a surge in investor activity in the housing market. The bank revealed this significant financial achievement on Wednesday, indicating its strong position amidst rising property prices across the country.
CBA reported that it is currently settling over 3,000 housing loans each week, reflecting the robust demand from investors, who now comprise 43% of new residential business. This marks an increase from 37% two years prior, while lending to owner-occupiers has decreased as a proportion of the bank’s overall loan book. The trend highlights how investors, benefiting from existing equity in their properties, are outbidding first-time homebuyers in a competitive market, intensifying generational wealth disparities.
Following the earnings announcement, CBA shares surged by more than 7%, a response from traders buoyed by the bank’s strong growth in both residential and business lending. During an investor call, CBA’s Chief Executive Officer, Matt Comyn, noted that home loan balances have risen by 7% over the past year, reaching $622 billion. He also highlighted that 97% of home loan customers hold a transaction account with the bank.
The bank’s cash profit represents an increase of 6% compared to the previous year, exceeding market expectations. In line with this positive performance, CBA declared an interim dividend of $2.35, an increase of 10 cents from the previous year.
CBA’s report also indicated a decline in mortgage repayment arrears as a percentage of its total mortgage book. The easing of household financial pressure can be attributed to three interest rate cuts last year and subsequent tax relief measures. Nonetheless, the current level of arrears remains elevated, and the recent interest rate hike is expected to impact mortgage repayments in the near future.
Despite the bank’s impressive profits, it has faced criticism from the Finance Sector Union (FSU). The union raised concerns regarding rising workloads for CBA employees and heightened anxiety regarding job security amid increasing automation. A survey conducted by the FSU revealed that 72% of over 1,700 CBA workers expressed concerns about their job stability, primarily due to offshoring and the rapid integration of artificial intelligence into banking processes.
The growth in investor lending at CBA reflects a broader trend across Australia, as banks compete for what rival bank Westpac describes as “attractive” customers. In the last three months of 2025, investors accounted for two in five home loans issued, totaling nearly $43 billion in loans, according to the Australian Bureau of Statistics. This number surpasses the 57,282 loans issued to existing owner-occupiers and nearly doubles the 31,783 loans granted to first-time buyers, who benefited from the government’s 5% deposit scheme.
The lending surge has exceeded expectations set by the Reserve Bank of Australia (RBA). During a recent address, RBA Deputy Governor Andrew Hauser noted that the bank had anticipated a more tempered lending environment following the interest rate cuts in 2025. He acknowledged that some financial conditions still appear accommodative and emphasized that the recent increase in the cash rate should eventually influence lending practices.
In response to an earlier announcement by the prudential regulator, which implemented further restrictions on borrowing, CBA and other banks are now limited in their new loans to customers exhibiting high debt-to-income ratios, capping them at 20% of total new lending. Hauser endorsed this regulatory move, describing it as “smart design” that encourages banks to lend responsibly while managing the risk of unsustainable credit growth.
As the Commonwealth Bank navigates this dynamic landscape, the interplay between investor activity and regulatory measures will remain critical in shaping the future of the Australian housing market.
