Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank of Australia has confirmed the issuance of $1.5B in subordinated securities on 12 June comprising $400M in fixed to floating rate securities and $1.1B in floating rate securities, both due on 12 September, 2035. These securities issued under CBA's A$ debt program, are designed to potentially exchange into ordinary shares upon a non-viability trigger event and their issuance is not expected to materially impact CBA's financial position. In addition to that, the CommBank PERLS X Capital Notes (ASX Code: CBAPG) were suspended from quotation on 03 April pending redemption with their removal from quotation expected following the redemption announcement.
CBA reported an unaudited statutory and cash net profit after tax (NPAT) of approximately $2.6B. This figure remained flat on the 1H25 quarterly average but increased by 6% compared to the prior corresponding quarter. Operating income grew by 1%, attributed to lending volume expansion and higher trading income, while operating expenses also rose by 1% due to investments in technology and frontline staff. The company distributed $3.8B in dividends during this period, directly benefiting approximately 814,000 shareholders and over 13M Australians through superannuation.
CBA continues to demonstrate strong balance sheet settings having successfully completed its FY25 funding task during the March quarter and maintaining robust capital and provisioning levels. The Group's Basel III Common Equity Tier 1 (CET1) ratio stood at 11.9% as of 31 March, with Tier 1 and Total Capital ratios at 13.8% and 20.7% respectively. The CET1 ratio increased by 45 basis points in the quarter primarily driven by capital generated from earnings. The bank's focus remains on supporting customers through cost of living pressures, investing in its franchise for superior customer experiences and executing its strategy with discipline to deliver solid and sustainable results for shareholders.
Bank of Queensland Limited (ASX: BOQ)
Bank of Queensland showcased substantial progress in its transformation, transitioning into a more streamlined specialist bank by the half year ended 28 February. The company reported robust financial performance with cash earnings after tax rising 6% to $183M and statutory net profit after tax increasing 13% to $171M compared to the prior corresponding period. This growth was underpinned by effective margin management, heightened operational efficiency and a notable reduction in credit losses. The Net Interest Margin (NIM) held steady at 1.57% from 2H24 reflecting portfolio optimization towards higher-margin commercial loans. Operating expenses decreased by 1% to $520M due to productivity gains and loan impairment expense significantly dropped by 80% to $3M.
The bank reported a 6% increase in Basic Cash Earnings Per Share (EPS) to 27.9 cents and a 40-basis point improvement in Cash Return on Average Equity (ROE) to 6.2%. BOQ upheld a robust capital position, evidenced by its Common Equity Tier 1 (CET1) ratio reaching 10.87%, an improvement of 11 basis points. An interim dividend of 18 cents per ordinary share fully franked was declared indicating a 6% increase. Major accomplishments include the successful completion of branch conversions on 01 March, the decommissioning of 22 systems and the realization of a 5% expense reduction from the prior half. In addition to that, BOQ completed its digital mortgage pilot with a market launch planned for 2H25 and successfully migrated over 140,000 customers in the first phase of the ME migration which is now serving 41% of retail deposit customers and managing $9.1B in deposits on its digital platform. The company also accelerated higher-returning business lending growth to 10%. These achievements underscore BOQ's commitment to enhancing shareholder returns and strengthening its market position.
(Source: Company Announcements)
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