Commonwealth Bank delivers bumper $5.1b profit
Commonwealth Bank has hiked its dividend after delivering a $5.1 billion first-half cash net profit, up 2 per cent from a year ago.
Australia’s largest bank will pay shareholders a dividend of $2.25 per share, fully franked, up 5 per cent from a year ago.
CBA’s net interest margin, a key gauge of profitability, was broadly stable at 2.08 per cent, up two basis points from a year ago.
The bank’s operating expenses rose to $6.4 billion, up 6 per cent from the previous six months, mainly driven by higher staff expenses due to inflation as well as additional expenses in generative AI and data infrastructure.
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“Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders, despite the weaker economic backdrop,” CEO Matt Comyn said on Wednesday.
“Our consistent financial performance demonstrates our disciplined operational and strategic execution, and the bank’s deep customer relationships that help us understand needs and risks and deliver superior digital experiences.”
Comyn said cost-of-living pressures were weighing on consumer demand, with younger customers in particular making “real” sacrifices.
“However, underlying inflation is now moderating towards the target range and we expect Australia will follow offshore economies with an easing cycle starting in 2025,” he said.
