CBA lifts investment spend to $2.4bn as fraud losses mount

Commonwealth Bank will hold technology investment spend steady at $2.4 billion in the year ahead, having increased it 6% to that level in FY26, the bank said on Tuesday.

The investment reflects continued spending on technology infrastructure, modernisation and artificial intelligence capabilities. Operating expenses climbed 6% to $13.8 billion in the year ended 30 June, driven by inflation and technology outlays, partly offset by productivity gains and favourable foreign exchange movements.

CBA's loan impairment expense — money set aside for expected credit losses — rose 9% to $788 million, the bank said. The increase reflects portfolio growth and what the bank termed cost-of-living pressures, with home loan arrears climbing to 0.73% and personal loan arrears to 1.72%.

The bank said it invested more than $1 billion during FY26 to protect customers from fraud, scams, cyber threats and financial crime. The spending included development of AI-powered cyber defence agents and the proactive alerting of customers to potential threats through approximately 40,000 daily fraud alerts. Since September 2024, the bank sent more than 5.9 million notifications via intelligent first-time payment warnings.

Customer support and arrears

CBA provided more than 147,000 tailored payment arrangements to customers needing support, the bank said. The arrangements reflect what the bank describes as cost-of-living pressures affecting household repayment capacity.

Despite arrears increases, the bank said overall credit quality remained sound. Provision coverage — the amount held against potential losses — remained strong at 1.53% of credit risk weighted assets, and the bank carries a $2.7 billion buffer relative to losses expected under its central economic scenario.

Outlook

CBA said the Australian economy has remained resilient, supported by historically low unemployment and longer-term investment. However, growth is slowing, with higher interest rates and inflation placing uneven pressure on household incomes and economic activity. Housing activity has softened from a high base, and application volumes appear to have stabilised in recent weeks.

The bank enters FY27 with a leading market position, serving one in three Australians and one in four Australian businesses. Its priorities are to deepen primary customer relationships, maintain discipline in volume and margin choices, improve productivity and deliver customer, risk and financial benefits from its investments.