Matt Comyn, CBA bosses secure big pay rises as bank profit again cracks $10 billion

Commonwealth Bank of Australia bosses have pocketed pay rises of up to 17 per cent for a record year that thrust the bank’s annual profit back over $10 billion and included the closure of BankWest’s last branches.

Australia’s biggest home lender on Wednesday revealed fixed pay for its senior executives was increased between 4.5 per cent and 16.7 per cent in the 2025 financial year to “better align” CBA’s remuneration with what was on offer from rival and offshore banks and reflect its “relative size and scale”.

Chief executive Matt Comyn’s fixed remuneration was cranked up 14 per cent to $2.85 million — his first increase since an 8.7 per cent rise in 2022 — though he actually took home a reduced $7.02m for the 12 months to June 30 because of changes to deferral and holding periods for his performance-related stock rewards.

CBA said in its annual report Mr Comyn’s pay rise recognised his “experience, sustained performance and leadership impact”, as well as consideration of its “size, scale, and market capitalisation, and emerging market trends”.

His six senior lieutenants scored salary increases averaging 10 per cent.

The bank, which makes up about 12 per cent of the S&P-ASX200 index, led into the record profit with a share market run that took its stock to $192 in June, capitalising it at over $300 billion, before a recent retreat.

However, the stock was hammered on Wednesday, giving up 5.4 per cent to $169.12 as investors expressed concern about increasing pressure on CBA’s margins and revisited its value. The plunge wiped $16b from the bank’s capitalisation.

“The market continues to question its lofty valuation,” IG Markets analyst Tony Sycamore said, adding that interest rate cuts by the Reserve Bank of Australia “reduces the ability of the bank to leverage its large deposit base and as margins are compressed”.

CBA’s cash profit, which is the bank’s preferred earnings measure, was 4 per cent higher at $10.25b — bettering the $10.16b returned for 2023. Statutory earnings were 7 per cent higher at $10.13b.

The result was accompanied by a $2.60-a-share fully franked final dividend, increasing the annual payout to $4.85. The dividends will distribute $8b between about 13 million Australian investors.

CBA attributed the record result to higher business and personal lending, and lower loan impairments on the back of an improving economic outlook that has boosted consumer confidence.

“We know many Australians have found the past four years challenging, particularly dealing with cost-of-living pressures,” Mr Comyn told a briefing on Wednesday.

“This past year has brought some relief through easing inflation, lower interest rates and tax cuts.

“Many households are now experiencing a rise in disposable income.

“And discretionary spending has also picked up, reflecting growing consumer confidence.”

CBA closed Bankwest’s branch network last year, converting the historic WA lender to a digital-only bank. It said on Wednesday that unsurprisingly, visits to Bankwest’s website leapt 50 per cent during 2024-25, but it also revealed the business gained 50,000 customers during the year.

In a separate announcement, CBA unveiled a new partnership to widen the rollout of artificial intelligence systems, saying the deal with OpenAi would make it more efficient and profitable.

“To be globally competitive Australia must embrace this new era of rapid technological change,” Mr Comyn said.

“Our strategic partnership with OpenAI reflects our commitment to bringing world-class capabilities to Australia, and exploring how AI can enhance customer experiences, better protect our customers, and unlock new opportunities for Australian businesses.”

Mr Comyn said the increasing use of AI did not necessarily mean more job cuts at the bank — employee numbers actually rose 5 per cent to 51,346 last year, largely due to the addition of 2000 technology roles — insisting it would be used in partnership with the workforce.

“Equipping our people with the most advanced AI tools and capability is a key objective of this strategic partnership,” he said.

“We will continue to invest in our people and their AI proficiency so they can better support our customers, while building their skills and experience.”

The accelerated technology investment, however, contributed to a 6 per cent increase in CBA’s operating costs, adding to analysts’ concerns for its 2026 profit outlook.