The Commonwealth Bank has announced a cash net profit after tax (NPAT) of $9.45 billion, up 3 per cent on the previous year, in the bank's full-year results for 2015-16.
CBA’s statutory NPAT also saw an increase, up 2 per cent to $9.23 billion, while fully franked final dividends sat at $2.22 per share, bringing the full-year dividend to $4.20 – holding flat on last year.
Loan impairment expenses rose 27 per cent on last year, mainly due to “higher provisioning levels” in institutional banking and markets, New Zealand, and international financial services.
In addition, the bank's Common Equity Tier 1 capital ratio grew by 150 basis points on an APRA basis, bringing it to 10.6 per cent.
Commonwealth Bank chief executive Ian Narev said this figure places CBA “above any ‘unquestionably strong’ benchmark” for the capital ratio, adding that the bank is “confident it can maintain its “position of strength across all required metrics”.
“Our capacity to support our customers is directly related to the strength of our balance sheet," Mr Narev said. "As a result of the capital raising and strong organic growth throughout the year, we have substantially boosted our capital position."
UBS Asset Management said this marked a “soft half” for Commonwealth Bank, noting that the cash NPAT was below the consensus value, and while it was “good to see a response on costs”, the trend now was for “deteriorating asset quality”.
Read more:
November rate cut likely: AMP Capital
Platform share of non-super market to double
Pension changes to hit retirement adequacy
APRA is undertaking work to keep Australian’s financial institutions secure if and when the economic summer ends, said newly appointed dep...
National Australia Bank’s chief executive has taken a $2.1 million pay cut ahead of his appearance at round seven of the royal commission....
Lonsec is introducing access to superannuation fund research on its iRate platform, offering financial advisers access to investment data ga...
