Commonwealth Bank of Australia recorded a full-year cash profit of A$10.25 billion (US$6.7 billion) for the 12 months to 30 June, its highest on record and fractionally ahead of analyst estimates. Profit growth was underpinned by a buoyant housing market and an aggressive push into business lending, which expanded 12.2%—ahead of system growth—while home-loan balances rose 6.1%. The country’s largest lender lifted its total dividend to an unprecedented A$4.85 a share after declaring a final A$2.60 payment. Net interest margin edged up nine basis points from a year earlier to 2.08%, and full-year cash return on equity held at 13.5%. CBA’s common-equity tier-1 ratio was steady at 12.3%, leaving headroom for further capital returns. Strong earnings did not translate into share-price support: the stock fell roughly 5% on Wednesday to a three-month low as investors questioned valuations that trade at more than three times book value—well above domestic and global peers. Portfolio managers at Blackwattle Investment Partners and Martin Currie warned that the premium is hard to justify without material earnings beats. Management said 85% of mortgage customers are ahead on repayments, yet loans more than 90 days past due rose to 0.70%, the highest since 2018, reflecting lingering cost-of-living pressure. While the Reserve Bank of Australia’s rate cuts to 3.6% have eased funding costs, CBA cautioned that global economic uncertainty and intense domestic competition could pressure margins in the year ahead.