Also higher were operating income – up 1%, and underpinned by growth in lending volume and higher trading income – and operating performance, which was 1% higher than the first half quarterly average, and 6% higher the prior comparative quarter.

CBA was also buoyed by stronger data for business loans, which rose 9.1% to $3.7 billion from the previous quarter.

But the bank also underscored a 1% rise in operating expenses during the period, as a result of higher spending on technology and frontline staff, and partly offset by two less days in the quarter and the benefit of ongoing productivity initiatives.

CEO Matt Comyn said the bank was navigating successfully through a period which he acknowledged was ‘challenging’ for many Australian households and businesses as a result of cost-of-living pressures.

“Our focus on supporting our customers, investing in our franchise to deliver superior customer experiences and executing our strategy with consistency and discipline has delivered solid results for our shareholders,” he said.

“Our balance sheet settings remain strong. We have maintained strong capital and provisioning levels, and have successfully completed our FY25 funding task during the March quarter.

“Our deliberate and long-term conservative approach to key balance sheet settings enables us to support our customers, the economy and our shareholders through a range of macroeconomic scenarios.”

CBA shares have been $166.14.

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This was beyond what analysts had expected, with CBA explaining its core business had experienced volume growth and that this – as well as a lower loan impairment expense – underpinned the NPAT figure.

Within the core business, Commonwealth said the number of home loans had risen 3% while business and corporate loans were up 2%.

Chief executive officer Matt Comyn said the bank’s performance was particularly good, especially considering the wider economic headwinds right now.

“Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders, despite the weaker economic backdrop,” he said.

“Our consistent financial performance demonstrates our disciplined operational and strategic execution, and the bank’s deep customer relationships that help us understand needs and risks and deliver superior digital experiences.”

Comyn also said inflation was creeping closer to the RBA’s target range, but acknowledged economic conditions had been tough for many Australians.

“The Australian economy has slowed considerably, with cost of living pressures continuing to weigh on consumer demand and younger customers in particular making real sacrifices,” Mr Comyn said.

“Private sector growth is weak, immigration is starting to slow and geopolitical uncertaintiesremain.”

CBA reported an interim dividend of $2.25, up 5% from the first half of FY24.

The ‘big four’ bank’s shares have been trading at $162.16.

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Operating income also rose during the quarter – by 3.5% – while inflation pushed operating costs up 3% for the period, and operating performance being up 5% on the 2H24 quarterly average.

The bank said that volume growth was seen in home lending and household deposits during the period, with retail bank transactions also on the increase – as an additional 121,000 accounts were added during the quarter, based on continued non-migrant and migrant account openings.

Household deposits grew $14.9 billion in the quarter.

CBA was also experiencing positive movement when it came to home loans – which grew $8.6 billion at 1.3x system for the three months to September 2024, as the bank focused on retention of current clients and improved acquisition volumes.

Looking at business flow for the quarter, 66% of this came from proprietary mix for home loans.

CEO Matt Comyn said the cost-of-living crisis faced by Australian consumers was a factor the bank was aware of in its delivery to customers.

“These results demonstrate ongoing focus on delivering for our customers, and disciplined operational and strategic execution,” he said.

“Many Australians continue to be challenged by cost-of-living pressures. We have continued to support our customers, invest in our franchise, and provide strength and stability for the broader economy.”

Mr Comyn added that he was ultimately optimistic on the health of the Australian economy, and its overall outlook, but headwinds were still present.

“Inflation is moderating, but at a slowing pace, and global geopolitical tensions are creating uncertainty,” he said.

“Growth in the Australian economy remains slow, as higher rates continue to weigh on consumer demand and bring inflation back to the target range.”

CBA has been trading at $150.25.

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Heading into the afternoon, the financial sector moved ahead of utilities as the best-performing sector, registering gains of 1.50% on the ASX.

The story of the day was Commonwealth Bank of Australia (ASX:CBA), which broke its all-time record in intraday trade, reaching a share price of $143.50 in the early afternoon, before readjusting slightly down from that number. CBA’s previous record was $143.38.

ANZ was also performing well: with a 1.44% rise in its share price, which was $31.70 at 13:24 AEST, while Westpac was up 1.39% to $32.02 and National Australia Bank (NAB) had risen 0.95% to $38.87.

The rally across Australia’s financial sector boosted the overall performance of the ASX200, which had gained nearly 0.60% to 8029.20 by 13:28 AEST.

The utilities sector had gained 1.41% at the same time, followed by the discretionary sector – which was up 1.29%, staples (up 0.96%) and real estate, which had listed 0.93%.

Energy was the worst-performing sector, being down 1.68%, while materials were down 0.65%, information technology was down 0.43% and telecommunications were down 0.13%.