Commonwealth Bank of Australia on Wednesday delivered a record cash net profit of $5.45 billion for the six months to December 31, up six per cent from the same period in 2024 and beating expectations of $5.19 billion.
Revenue rose six per cent to $15 billion, surpassing forecast of $14.81 billion.
It will pay a fully franked dividend of $2.35 a share, up four per cent from a year prior - again beating expectations.
Analysts had forecast a dividend in the $2.26 to $2.34 range.
"Congratulations on a stonking result," one analyst told CBA chief executive Matt Comyn on a conference call on Wednesday.
"I thought it was a really clean set of numbers from CBA and that should be, in my view, probably an inflection point for the stock," said James Gerrish, lead portfolio manager at Market Partners.
CBA shares finished Wednesday up 6.8 per cent to a three-month high of $169.56, their best gains since a 10.9 per cent gain on March 30, 2020.
The stock had struggled the past few months after a stellar run in 2024 and much of 2025.
Moomoo dealing manager Chris Strazzeri said the bank's profit boost had set the tone for a big day in the broader stock market.
CBA's results are closely watched because the bank is seen as a bellwether for the health of the overall banking sector and the national economy.
The other big four banks won't report their half-year results until May.
The strength of the result had been driven by CBA's ability to grow lending and deposit volume while remaining disciplined, Mr Comyn told analysts.
Home lending grew seven per cent year-on-year to $622 billion, business lending rose 12 per cent to $168 billion and interest-bearing deposits held for customers grew nine per cent to $861 billion.
Credit quality also remained strong, with loan impairment expenses falling to $319 million, from $406 million six months ago.
There was one blemish on the figures: CBA's net interest margin dropped slightly, falling to 2.04 per cent from 2.08 per cent.
The metric is used to gauge the profitability of banks and measures the difference between the income generated from loans and the interest expenses paid to depositors.
CBA said the slightly lower outcome was due to competition in home lending - where Macquarie has emerged as a fierce rival to the big four banks - as well as lower income from its treasury and markets arm.
The bank had overall shown disciplined lending and deposit volume growth across retail and business segments, as well as strong credit quality, Totality market strategist Aaron Zanchetta said.
"Underlying margins were slightly compressed amid competitive pressures, but the bank's raised interim dividend reflects confidence in earnings resilience and capital strength," he said.
Mr Comyn said he thought CBA was "just scratching the surface" of the potential of AI, which it has been deploying at speed to detect fraud and scams and automate customer processes.
"I think anything that is disruptive, like this technology is, it's really important to engage inside the organisation and maintain the very high levels of engagement and motivation," Mr Comyn said, adding he didn't believe in the more pessimistic scenarios around job losses.
