Commonwealth bank reports cash profit of $4.68 billion, missing expectations
Just days after being called out in the banking royal commission final report, one of Australia’s ‘big four’ banks, Commonwealth bank has reported its half year results
Commonwealth bank’s H1 cash profit was recorded at $4.68 billion, up 1.7% from the previous year. However, one of Australia's biggest banks has missed analysts' expectations despite the increase.
Analysts say higher funding costs and regulatory pressure played a part.
The bank reported its H1 operating income was $12.408 million, down 1.9%, due to volume growth offset by lower net interest margin, lower markets and fee income, and the impact of weather events.
The bank recorded its statutory net profit after tax (NPAT) was at $4.599 million.
While its net interest margin of 2.10%, was down 4 basis points from 2H18, due to higher funding costs and home loan switching and competition.
CBA’s interim dividend per share reported flat at $2.00, while the bank says their dividend reinvestment plan is anticipated to be satisfied in full by an on-market purchase of shares.
The bank reported its earnings per share (cash basic) increased 0.9% to 265.2 cents.
Next steps after the royal commission
CBA has said on Wednesday it will work with regulators and the government to implement inquiry recommendations.
CBA has said the bank is "Working through the royal commission's final report and 76 recommendations"
It says it is implementing stronger policies and processes, including a new code of conduct.
Commonwealth Share price
Monday’s royal banking commission saw stocks of Commonwealth bank of Australia surge, but on Wednesday morning the surge ended, with the financial sector trading in the red on Wednesday morning.
Shares of Commonwealth Bank of Australia fell as much as 2.2 % to A$72.02 at time of writing.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
