Commonwealth Bank of Australia
(ASX:CBA) has reported a record first-half cash profit, rising 13 per cent to $3.34 billion, and says it is cautiously optimistic about the year ahead.
In the six months to 31 December the country's biggest lender says statutory net profit lifted 5 per cent to $3.05 billion.
CEO Ralph Norris says the Australian economy continues to perform well and other advanced economies are showing signs of improvement, however the domestic banking industry still faces a number of headwinds.
Mr Norris adds that, “Underlying credit growth remains subdued with both consumer and corporate confidence fragile. Competition is intense with depositors benefiting from historically high margins, while wholesale funding costs also remain at elevated levels".
CBA has declared a fully franked interim dividend of $1.32, bringing its payout ratio to just under 62 per cent.
Commonwealth Bank reported a net profit of $5.7 billion in the 2010 financial year.
