The Commonwealth Bank's cash net profit after tax for the 12 months to June 30 was $9.8 billion, down two per cent from 2023/24.
Net interest income dropped one per cent to $22.8 billion.
CBA will pay a $2.50 fully franked dividend, taking its full-year dividend to $4.65 per share, up three per cent from a year ago.
It said on Wednesday its net interest margin was 1.99 per cent, down eight basis points from 2023/24, largely due to the impact of competition and deposit switching. Margins stabilised during the second half of the year.
"Our results demonstrate our continued focus on supporting our customers, our disciplined operational and strategic execution, and the strength of our balance sheet," CBA chief executive Matt Comyn said.
Despite higher interest rates, Commonwealth Bank's loan impairment expenses fell sharply, dropping fell 28 per cent to $802 million.
CBA said this reflects its robust credit origination and underwriting practices, rising house prices and lower expected losses within consumer finance.
The percentage of customers more than 90 days behind on their loan payments ticked up, with home loans in arrears hitting their historical average rate of 0.65 per cent after dropping well below that in recent years.
The percentage of customers behind on their personal loans and credit card payments rose to slightly above their historical average levels, which CBA said reflects the impact on customers more susceptible to ongoing cost of living pressures.
CBA said it had 132,000 tailored payment arrangements in place to help customers manage their mortgage and consumer finance repayments and household budgets.
"Many Australians continue to be challenged by cost-of-living pressures and a fall in real household disposable income," Mr Comyn said.
"For customers who are finding it tough, we can support them in lots of different ways - from helping them feel more in control, to easing the pressure with a repayment plan, or accessing a safety net or working capital to support their business."
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