The Commonwealth Bank (CBA) has announced a remarkable half-year cash profit of $5.45 billion, attributed to a surge in investor interest in the housing market. This figure represents a significant increase as investors have gained market share at the expense of owner-occupiers. The bank reported that it is now settling an average of more than 3,000 housing loans each week, coinciding with record-high property prices in various regions of Australia.
Data from CBA indicates that residential investment lending has strengthened, with investors comprising 43% of new business. This is a notable rise from 37% two years ago, while lending to owner-occupiers has decreased as a share of the bank’s total loan portfolio. Established investors are frequently outbidding first-time buyers in a competitive market, exacerbating the generational wealth divide.
Following the earnings announcement, CBA’s shares surged more than 7%, reflecting investor optimism regarding the bank’s robust growth in both residential and business lending. During a call with investors, CBA Chief Executive Matt Comyn highlighted a 7% increase in home loan balances over the past year, now totaling $622 billion. Notably, 97% of these customers also maintain a CBA transaction account.
CBA’s cash profit marks a 6% increase from the previous year and surpasses market expectations. The bank has declared an interim dividend of $2.35, an increase of $0.10 compared to last year. The bank also reported a decline in the percentage of customers falling behind on mortgage repayments, attributed to three interest rate reductions and tax cuts that have eased financial pressures on households. Nonetheless, the current arrears level remains elevated, and the effects of a recent interest rate hike have yet to be fully realized.
Criticism has emerged from the Finance Sector Union (FSU), which represents CBA employees. The union claims that staff are experiencing heightened workloads and anxiety over increasing automation in the workplace. A survey of over 1,700 CBA employees revealed that 72% are concerned about their job security, mainly due to offshoring and the rapid growth of artificial intelligence.
Investor lending at CBA mirrors a broader trend across Australia, as banks increasingly target what rival Westpac describes as “attractive” customers. According to the Australian Bureau of Statistics, investors accounted for two in five home loans issued in the last quarter of 2025, totaling nearly $43 billion across 60,445 loans. This figure surpasses the 57,282 loans issued to existing owner-occupiers and is nearly double the number of loans granted to first-time buyers, which rose to 31,783 with the support of the government’s 5% deposit scheme.
The surge in lending was greater than anticipated by the Reserve Bank of Australia (RBA). Deputy Governor Andrew Hauser indicated that lending remained accessible even after the RBA’s recent interest rate hike, suggesting that some financial conditions still lean towards being accommodative. “Credit growth has been … part of the stuff, I would say, that policymakers may have missed slightly,” Hauser remarked during an address to the Australian Chamber of Commerce and Industry.
New borrowing limits imposed by the prudential regulator came into effect on February 1, capping banks’ new loans to customers with debt-to-income ratios exceeding 20% of their total new lending. Hauser welcomed this move, describing it as “smart design,” urging banks to lend while remaining aware of the potential for unsustainable credit growth.
The Commonwealth Bank’s performance highlights significant shifts in the Australian housing market, driven largely by investor activity, and raises questions about the long-term implications for first-time buyers and overall market stability.
