CBA posts $4.8b profit as competition rises

The Commonwealth Bank has posted a cash profit of $4.8 billion, falling short of analyst expectations, with chief executive Matt Comyn warning Australian households continue to feel pressure and cut back spending in the current environment.

“Our lower cash profit reflects cost inflation and a competitive operating environment,” he said.

The consensus was for CBA to clock in a $5.1 billion cash net profit.

CBA boss Matt Comyn said households continued to feel pressure.
CBA boss Matt Comyn said households continued to feel pressure.Credit: Dominic Lorrimer

The bank’s profit result was shy of its record $5.15 billion half-year profit this time last year, when it was facing stiff competition in mortgages.

CBA’s net profit margin – a measure of profitability comparing the bank’s funding costs with what it charges for loans – fell 6 basis points from the prior half to 1.99 per cent as a result of increased competition, customers switching to higher yielding deposits and higher funding costs.

CBA announced an interim dividend of $2.15 a share, 2 per cent higher than the previous half.

Shares in CBA closed at an all-time high of $116 a share on Tuesday.

More to come

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