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Australia’s largest bank, Commonwealth Bank (ASX:CBA) reported strong financial and operational performance in its half-year 2022 results this morning.

CBA reported Statutory Net Profit after Tax (NPAT) increased 26% to $4.741 billion, beating Bell Potter’s expectation of $4.380 billion. Cash NPAT increased 23% to $4.746 billion, boosted by system growth in all core markets, lower collective provisions from an improvement in economic outlook and reduced remediation expenses.

Meanwhile operating income was up 2% to $12.205 billion, with continued volume growth, while operating expenses were flat at $5.558 billion, due to increased staff costs and other investment initiatives. Staff expenses were up 13%. The bank reported strong overall operating performance, delivering market growth in home and business lending and deposits, through a customer focus.

CBA’s net interest income rose 1.5%, with growth in home and business lending, while its net interest margin was down 14 basis points.

And CBA declared a fully franked interim dividend of $1.75.

As for the banks future outlook, Commonwealth Bank will extend their product offering to retail and business customers, as well as their digital leadership. 

Since the announcement, there have been two broker updates. Macquarie maintain an underperform rating at a $88.50 price target and Citi have a Sell rating with an $87 target.

As at the time of recording CBA’s share price is up 5%.