Commonwealth Bank posts record cash profit of $7.11 billion

The Commonwealth Bank is positive about its medium to long-term outlook after posting a record cash profit of $7.11 billion.

The profit after tax of $7.11 billion for the full year to June 30 was a rise of 4% on the previous corresponding period.

Net profit lifted 11% to $7.09 billion and the bank will pay a final dividend of $1.97, 5% higher than last year’s payment. The figure takes the bank’s total dividend to $3.34.

Group chief executive Ian Narev said it was a good result given the uncertain environment in which the bank is operating.

“As expected, revenue growth was subdued, reflecting ongoing caution from both our retail and corporate customers,” he said.

“This translated into lower credit growth and greater pressure on market sensitive businesses. In addition, higher funding costs have put pressure on margins as competition for domestic deposits intensifies and wholesale funding continues to be expensive.”

This article first appeared at SmartCompany.

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