$6.4B Record Profit for Commonwealth Bank

Submitted by Sharemarket News on 10 August, 2011 - 11:26

Commonwealth Bank (ASX:CBA) booked a record $6.4 billion full year profit, or a 13 percent increase. Cash profit added 12 percent to just over $6.8 billion, approximately in line with expectations.

CBA reported an 18.4 percent return on equity on statutory results with a 12 percent rise in earnings per share to 411.2 cents.

The bank cited careful cost controls and an 11 percent revenue increase for the boost in profits, but cautioned that the 2011 financial year has been fraught with restrained credit growth and consumer caution which will likely continue on to 2012.

Chief executive Ralph Norris said CBA performed well despite the challenges.

"We have maintained our conservative business and financial settings which has enabled us to support our customers in an uncertain economic environment which remains challenging for many," he said.

CBA also increased net interest margin to 2.19 percent, but Norris warned that funding costs may rise due to offshore volatility. The bank said it will continue improve productivity to increase profits.

CBA added 188 cents to its final dividend, up from an interim dividend of 132 cents, fully-franked. Ex-dividend date is August 15.