Not to get upstaged, after multiple lenders quickly moved to cut rates following the RBA’s decision to slash rates, Aussie big four have implemented reduction in home loan rates.
Commonwealth Bank of Australia, the nation’s largest lender and National Australia Bank the second-biggest, were quick to cut their standard variable home loan rates by 25 basis points. Westpac Banking Corp, the third-biggest lender, and ANZ Group, the fourth largest, also followed suit with identical 25-bp cuts.
CBA and ANZ's rate cuts took effect from August 22, while NAB's reduction became effective from August 25 and Westpac's from August 26. Thus, all four major banks have now passed on the full rate reduction to home loan customers.
Now all eyes would be on RBA’s November meet, where one more cut is expected although it has indicated cautiousness amid uncertain growth prospects.
Commonwealth Bank of Australia (ASX: CBA)
has reported solid results for the Financial Year 25. Revenue increased by 7.6% to $9.65 billion and net profit rose 0.5% to $10.13 billion. Operating expenses grew by 6% primarily due to increased investment in technology and additional staffing. Lending volumes showed growth and contributed to stable underlying net interest margins which improved by 9 basis points. Loan impairment expenses decreased reflecting improved credit quality amid positive economic conditions. The bank has maintained a strong capital position as the Common Equity Tier 1 ratio stood at 12.3%. This is well above the regulatory requirements. A fully franked final dividend of $2.60 per share was also declared bringing the full year dividend to $4.85.
Westpac Banking Corporation (ASX: WBC)
has reported a strong financial result for the quarter which ended on June 2025. The unaudited statutory net profit has reached $1.9 billion which is up by 14% on the first half of FY25 average. Net profit excluding notable items also rose to 8%. Net interest margin improved to 1.99% which was driven by core NIM growth of 5 basis points. Revenue grew by 4% with expenses rising 3% due to increased investment in front line banking and transformation programs like UNITE. Customer deposits increased by $10 billion alongside a $16 billion growth in gross loans which is driven by business and institutional banking growth. Impairment charges remained low at 5 basis points of average gross loans. The Common Equity Tier 1 (CET1) capital ratio stood at 12.3% which is above the target range. Liquidity and funding ratios are also well above regulatory minimums.
Australia and New Zealand Banking Group Limited (ASX: ANZ)
has reported a solid capital and risk profile for the quarter ended June 2025. The Group’s Level 2 Common Equity Tier 1 (CET1) ratio increased by 16 basis points to 11.94% which was supported by profit generation and offsetting risk weighted asset growth. Total Risk Weighted Assets (RWA) rose to $476.8 billion. Liquidity was reported strong as average Liquidity Coverage Ratio stood at 133.6% which is far exceeding the regulatory requirements. The Net Stable Funding Ratio stood at 115.9% reflecting strong funding stability despite increased lending. Credit quality remains stable with low impairment charges and a strong provisioning balance. ANZ’s leverage ratio held steady at 4.4% which is well above regulatory minima.
National Australia Bank (ASX: NAB)
has reported its third quarter update for 2025. It showed stable financial performance with cash earnings slightly down 1% compared to the first half average. This was mainly due to higher credit impairment charges. Revenue rose by 3% and was driven by higher margins and volume growth while net interest margin also increased by 8 basis points. Operating expenses increased by 3% reflecting higher personnel costs and technology investment. Business and private banking lending grew 4% and the home lending up by 2%. Deposits remained broadly stable over the quarter but increased 6% over the past nine months. Credit impairment charges rose to $254 million. The Group’s CET1 capital ratio improved to 12.14% which was supported by earnings despite risk weighted asset growth.
(Source: Company Announcements)
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