CBA post A$4.9bn half year profit
(15 February 2017 – Australia) The Commonwealth Bank's (CBA) half year profits have increased to A$4.91 billion.
CBA reported the two 2 percent uptick in cash earnings, while also raising its interim dividend to A$1.99 a share.
The bank’s chief executive, Ian Narev said: "The risk of global market volatility, and indeed economic shock, remains heightened.”
Excluding one-off factors, CBA's operating income rose three percent, while operating expenses rose one percent over the year.
Charges for bad loans as a percentage of its assets remained unchanged at 0.17 percentage points.
The bank said higher funding costs impacted its net interest margin, which dropped four basis points to 2.11 percent.
Narev said although there was an increased risk of a global economic downturn, Australia’s economy was more encouraging.
"The combination of geopolitical volatility and weak economic recovery in parts of the world means the risk of market volatility, and indeed economic shock, remains heightened. At the same time, recent trends in the Australian economy are more positive," Narev said in the statement.
The bank’s institutional banking arm posted a 10 percent gain, while retail banking drove the profit increase, with its earnings rising 9 percent to A$2.46 billion.
The wealth management unit’s profits dropped by a third (34 percent) to A$249 million, due to a sharp fall in profits from general insurance, and higher expenses across the division.
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