Australia’s CBA profit hits 4-year high on first-half strength
2022.08.10 01:22
FILE PHOTO: A Commonwealth Bank of Australia logo adorns the wall of a branch in Sydney, Australia, May 8, 2017. REUTERS/David Gray
(Reuters) -Commonwealth Bank of Australia posted its highest annual cash earnings in four years on Wednesday, as it rode a first-half surge in home lending amid record low interest rates and booked a loan impairment benefit as COVID-19 risks eased.
The results wrapped up a solid fiscal year in which CBA beat out rivals to home buyers when rates were ultra-low, before the central bank began tightening its policy which halted the surge in the real estate market seen last year.
The over 100-year old bank said cash net profit after tax was A$9.60 billion in the twelve months to June 30, compared with A$8.65 billion a year earlier.
Its net interest margin, a key measure of profitability, however, fell 18 basis points to 1.90% amid stiff competition in home lending and an increase in low-yielding liquid assets.
It declared a final dividend of A$2.10 per share, compared with A$2.00 last year.
