The Commonwealth Bank of Australia (CBA) has reported a record half-year cash profit of $5.45 billion, driven by a surge in investment in the housing market. This significant increase reflects a trend where investors are gaining market share from owner-occupiers. The announcement was made on Wednesday, highlighting the bank’s robust performance amid rising property prices across various regions in Australia.
In its latest report, CBA indicated that it is now settling more than 3,000 housing loans on average each week. The bank’s data reveals that residential investment lending has reached new heights, with investors accounting for 43% of new business—up from 37% two years ago. In contrast, lending to owner-occupiers has decreased as a percentage of CBA’s overall loan book, illustrating a growing disparity in the housing market.
The rising dominance of investors has resulted in competitive bidding wars, frequently disadvantaging first-time homebuyers. This trend has contributed to widening the wealth gap, raising concerns about intergenerational equity in the housing sector. Following the earnings release, CBA’s shares surged by more than 7%, reflecting investor optimism regarding the bank’s strong growth in both residential and business lending.
During a call with investors, CBA’s Chief Executive Officer, Matt Comyn, noted that home loan balances increased by 7% over the past year, reaching $622 billion. He also highlighted that 97% of home loan customers maintain a transaction account with CBA. The bank’s cash profit increased by 6% compared to the previous year, surpassing analysts’ expectations. An interim dividend of $2.35 was announced, reflecting a 10 cent increase from the prior year.
Despite the positive financial results, CBA faces criticism from the Finance Sector Union, which has raised concerns about increasing workloads and the stress associated with automation among its employees. A recent survey of over 1,700 CBA workers revealed that 72% expressed anxiety over job security, particularly in light of offshoring and the rapid growth of artificial intelligence within the industry.
The rise in investor lending corresponds with a broader trend observed across Australian banks. According to the Australian Bureau of Statistics, investors accounted for two in five home loans issued in the last three months of 2025, totalling nearly $43 billion. This figure surpassed the 57,282 loans issued to existing owner-occupiers and was nearly double the number of loans granted to first-time buyers, which reached 31,783, aided by the government’s 5% deposit scheme.
The lending surge has exceeded the expectations of the Reserve Bank of Australia (RBA). During a recent address, RBA Deputy Governor Andrew Hauser acknowledged that credit growth had remained strong, even after the central bank raised interest rates last week. Hauser indicated that the RBA may have underestimated the ongoing demand for loans, suggesting that some financial conditions remain conducive for lending.
The RBA’s recent measures to limit borrowing, which came into effect on February 1, aim to cap new loans to customers with high debt-to-income ratios at 20% of total new lending. Hauser praised this move as “smart design,” emphasizing the importance of maintaining sustainable credit growth while still encouraging banks to lend responsibly.
As the Commonwealth Bank navigates these complex market dynamics, its record profits and the shifting landscape of the housing market highlight significant trends that could shape the financial sector and the economy in the coming months.
