In an ASX announcement on Wednesday, CBA noted its statutory NPAT came in at $9.48 million for the full financial year, down 6 per cent from its record result last year.
The reduction in NPAT, CBA explained, was driven by inflationary increases in operating expenses and was partly offset by a lower loan impairment expense.
“Operating expenses increased 3 per cent due to higher inflation impacting staff costs, additional technology spend to support the delivery of our strategic priorities, and lower one-off items,” the big four bank said.
Investment spend rose to $2 billion, up 1 per cent on FY2022–23, amid efforts to modernise the bank’s technology and improve resiliency, enhance its services, and meet evolving regulatory requirements.
CBA’s net interest margin (NIM) also fell to 1.99 per cent, down from 2.07 per cent in FY22–23.
The bank attributed the year-on-year margin decrease to the “impact of competition and deposit switching”, partly offset by higher earnings on replicating portfolio and equity hedges, and noted margins stabilised during the second half of the year.
It announced a final dividend of $2.50 per share, delivering a total FY23–24 dividend per share of $4.65, fully franked.
This reflects 70 per cent of cash NPAT and is “at the upper end” of the bank’s target payout range.
Commenting on the outlook, CBA chief executive Matt Comyn said the Australian economy “remains resilient” with low unemployment, continued private and public investment, and exports supporting national income.
“Higher interest rates are slowing the economy and gradually moderating inflation,” he said.
“Australia remains well positioned, but downside risks continue around productivity, housing affordability, as well as ongoing global uncertainty.”
However, Comyn also noted many Australians “continue to be challenged by cost-of-living pressures and a fall in real household income”.
The results highlighted consumer arrears have been on the rise in the last year, reflecting the impact of higher interest rates and cost-of-living pressures on some borrowers.
Loan impairment expense fell by almost a quarter (28 per cent) on FY22–23 to $802 million.
