How is CBA achieving record profits amid rising costs?

Key financial results 

Commonwealth Bank of Australia (ASX:CBA)

CBA reported a full-year cash profit of $10.25 billion, a 4% increase year-on-year (YoY). This was driven by lending volume growth and a stable net interest margin of 2.08%, with reduced loan impairment charges. However, gains were offset by higher operating expenses due to inflation and tech investments. CBA plans to maintain conservative financial settings. Shareholders will receive a final dividend of $2.60 per share, increasing the annual payout to $4.85.

Insurance Australia Group (ASX:IAG)

IAG forecasts moderate insurance profits for financial year (FY) 2026, between $1.45 billion and $1.65 billion, after a 21% profit surge to $1.7 billion. Net profit rose 51% to $1.35 billion. A final dividend of $0.19 per share will bring the annual total to $0.31. Strategic alliances with Royal Automobile Clubs in Queensland and Western Australia are expected to boost gross written premiums by 10%.

AGL Energy (ASX:AGL)

AGL Energy reported a $98 million statutory loss for FY 2025, despite a $900 million investment plan focused on battery deployment and acquisitions. Underlying net profit after tax fell 21% to $640 million. Shareholders will get a final dividend of $0.25 per share, with the annual total at $0.48.

Evolution Mining (ASX:EVN)

Evolution Mining achieved a record profit of $926 million, doubling the previous year's results. Gold production rose by 55% to 716,000 ounces, and copper production increased by 12%. Shareholders will receive a dividend of $0.13 per share. The company aims to sustain high cash margins through FY 2026.

Treasury Wine Estates (ASX:TWE)

Treasury Wine Estates announced a $200 million share buyback and a net profit of $437 million. While optimistic about Asian expansion, it warns of potential challenges in the Americas. Shareholders will see a final dividend of $0.20 per share, with a total annual increase of 11%.