Commonwealth Bank half-year profit misses consensus

Company News

by Anna Napoli

Australia's biggest bank, The Commonwealth Bank (ASX:CBA) says its first half 2019 cash net profit (from continuing operations) increased by 8 per cent on the same time last year to $4.67 billion.

The result missed analysts from UBS consensus of $4.79 billion.

Meantime, revenue from ordinary activities was down 4 per cent to $12.3 billion.

The bank's statutory earnings fell 6.3 per cent to $4.6 billion.

Its earnings per share (from continuing operations) fell 5 per cent to 259.6 cents.

CBA's net interest margin of 2.10 per cent was 4 basis points lower than the second half of 2018.

The decline was due to higher funding costs and home loan switching and competition.

The company has declared an interim dividend per share of $2.00 which is a flat result.

UBS says CBA's first half result missed consensus by 2 per cent and that the result was disappointing given a solid first quarter

CBA CEO Matt Comyn says the bank continued to deliver strong core business outcomes in a challenging period.

Shares in CBA (ASX:JHG) are trading 0.61 per cent lower to $73.15.




 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.