Commonwealth Bank of Australia
(ASX:CBA) has posted a record annual cash net profit of $6.1 billion, up 42% from the year before.
Year-on-year the bank says statutory net profit grew 20% to $5.66 billion driven by lower charges for problem loans.
A key measure of profitability, net interest margin, also grew by 2.13%, Commonwealth attributing the increase to asset repricing.
Chief Executive Ralph Norris says in a year where global financial markets were volatile, the financial strength and resilience of the bank’s franchise delivered excellent outcomes and a strong capital position, enabling Commonwealth to pay out $4.5 billion of interim and final dividends for the 2010 financial year, with over 80% in the hands of Australian residents.
A final dividend of $1.70 per share has been declared, 48% up from 2009, taking the final dividends for the year to $2.90 which represents a 74% pay-out ratio of profits.
Looking ahead Mr Norris warns that concerns remain for the recovery of the global economy and as a result the bank will maintain a degree of caution for the year to come, retaining conservative capital and liquidity settings for the foreseeable future.
Commonwealth Bank posted a profit of $4.7 billion for the year to 30 June 2009.
