FX.co ★ Commonwealth Bank Of Australia HY Profit Down

The Commonwealth Bank of Australia (CBA.AX) announced that its net profit after tax for the half-year ended 31st December 2023 was A$4.76 billion, marking an 8% decrease from the previous year.

In terms of cash basis, the net profit after tax derived from continuous operations amounted to A$5.02 billion, a 3% decline from the preceding year. This downturn is attributable to stagnant operating income and surging operating expenses, which were somewhat offset by a reduction in loan impairment expenses.

On the same cash basis, the operating income remained unchanged at A$13.65 billion. This stability was bolstered by volume growth and an increase in volume-based fee income, though it was somewhat counteracted by margin compression.

The bank declared an interim dividend that was 2% superior at A$2.15 per share, fully franked. The dividend payout ratio stands at 72% of the cash net profit after tax. Continuing its trend, the bank aims to maintain a full-year payout ratio between 70%-80% of the cash net profit after tax.