Commonwealth Bank of Australia (ASX: CBA) is making some of the biggest profits that corporate Australia has ever seen.
The ASX bank share is in a competitive industry yet it managed to make just over $10 billion of net profit in the 2025 financial year.
CBA reported in FY25 that statutory net profit grew by 7% year-over-year to $10.1 billion and cash net profit rose 4% to $10.25 billion.
The cash net profit increased a little further in the first quarter of FY26, being the three months to September 2025. Last quarter, the cash net profit of $2.6 billion represented a 2% year-over-year rise, while it was a 1% rise compared to the quarterly average of the FY25 second half.
Let's take a look at how much profit Commonwealth Bank is predicted to make in FY26.
Profit prediction for CBA
How much a business makes in earnings is key for investors to decide on how much they're going to value the business.
For example, if investors are willing to value a share price at 25x the earnings the business makes, a business growing its net profit from $1 billion to $1.1 billion could mean the market capitalisation can grow from $25 billion to $27.5 billion.
If CBA is able to grow its profit, then that could lead to an increase in the CBA share price over time.
The broker UBS is projecting that the ASX bank share could generate $10.76 billion of net profit in FY26. That represents a rise of in the mid-single-digits for both CBA's cash net profit and statutory net profit.
After seeing those quarterly numbers, UBS wrote:
Quarterly results have historically been unpredictable, making it challenging to form a definitive view on this release due to limited information. However, the headline figures indicate that CBA is delivering results broadly in line with expectations for 1H 26, as reflected in consensus estimates and UBSe forecasts. The 6.1% QoQ increase in costs is somewhat surprising, even excluding notable items, as is the decline in the CET1 ratio to 11.75%, compared to the 1H 26 consensus estimate of 12.3%.
At the time, the CBA share price was trading at around $175, which led to the broker commenting:
Given the current valuation, it would appear perfection is implicitly expected.
However, the business has fallen to a CBA share price of $155 since then. This puts it at 24x FY26's estimated earnings, according to UBS.
However, while it is cheaper, UBS still has a sell rating on the ASX bank share as it sees better value elsewhere in its coverage universe. The price target is $125, implying a possible fall of around 20% within the next year.
