CommBank Record $7.09 Billion Profit

Submitted by Share Trading on 16 August, 2012 - 09:45

Australian banking giant, Commonwealth Bank of Australia (ASX:CBA) have released their full year results.

  • Commbank net profit $7.09 billion (+11 percent)
  • Full year dividend payout: $3.34 per share. $5.3 billion paid to shareholders, or 75 percent of this year's CommBank income.
  • CBA holds 25 percent of the Australian home lending market with $351 billion loans on June 30.
  • Cheif Executive of Commonwealth Bank, Ian Narev said that: "The people who own this group ... 60 per cent of them are Australian households directly, that's 800,000 Australian families. Another 20 per cent of our shareholders are Australians who own them directly through their pension funds. So the shareholders who we are doing well for are millions and millions of Australian households.And on that basis I actually feel pretty good about the profit we make."
  • CEO Narev said: "We don't yet see any signs for a catalyst for greater stability in Europe. Until that is resolved we are going to be in relatively subdued conditions"
  • Basel III, new international banking standards have been pushing for increased deposits. This has led to rivalry between Australian banks for depositors.
  • Return on Equity (ROE) ratio fell 18.6 percent (from 19.5% the previous year. It was above 20% 5 years prior) ROE metric measures the ability to turn assets into profits.
  • Shares in CBA rose 0.92 percent to close the day at $56.05.
  • Final dividend was declared: 197 cents per share, fully franked with ex dividend at 20/8/2012. The interim dividend distributed earlier in the year was 137 cents. Total dividend payout by CBA for this FY is 344 cents.