The Commonwealth Bank of Australia
(ASX:CBA) has cuts its final dividend after reporting a slight fall in full year net profit this morning due to an increase in impairment expenses.
Net profit after tax for the 12 months to June 30 came to $4.723 billion, down 1 per cent from the $4.79 billion recorded the year before. The result includes a $612 million after tax gain from its acquisition of Bankwest.
The bank’s cash earnings, which strip’s out volatile items, fell 7 per cent to $4.42 billion.
CBA recorded an impairment charge of $2.94 billion against problem loans.
Commenting on the outlook for the 2010 financial year CEO Ralph Norris says the 2009 financial year has been a challenging one and the outlook remains uncertain. Saying that overall credit growth in Australia is expected to slow through 2010 and economic conditions are likely to remain challenging.
CBA declared a final dividend of $1.15 a share - a 25 per cent cut on last year, and announced plans to raise $700 million through an issue of hybrid capital.
The Commonwealth Bank’s profits have gradually risen over the last four years.
