CBA profit falls, confident of economic recovery

The Commonwealth Bank has delivered half-year cash profits of $3.9 billion, a 10.8 per cent fall on a year earlier, with the banking giant saying the economy is well positioned for recovery.

In a sign of the bank’s confidence, shareholders will receive an interim dividend of $1.50, up from 98c in the June half, but still lower than this time last year.

“Australia is relatively well positioned having started from a position of fiscal and economic strength,” chief executive Matt Comyn said.

“We have a solid pipeline of infrastructure projects, the outlook for mining and agriculture is strong, and the community has benefited from the government’s significant income support measures.”

Analysts had expected a dividend of about $1.45 a share, and earnings of about $3.9 billion from continuing operations, according to consensus estimates cited by Goldman Sachs.

More to come