Commonwealth (ASX:CBA) profit jumps by 19.7% in FY21

Company News

by Lauren Evans

Commonwealth Bank (ASX:CBA) records net profit after tax of $8,843 million for the period ending 30 Jun 2021, up 19.7 per cent from the prior year.

This follows Commonwealth's improved economic conditions and outlook, resulting in a lower loan impairment expense and a strong operational performance.

Loan impairment expense decreased by 78 per cent from the prior year, to $554 million. Operating income was $24,156 million, up 1.7 per cent from the prior year, with improved fee income, offset by a lower net interest margin.

Operating expenses were $11,359 million, up 3.3 per cent, driven by investment in the franchise and higher volumes. Capital return of $6 billion reflects progress of the execution strategy aimed to support customers. 

Net interest margin was 2.3 per cent, down by 4bpts due to higher liquid assets, with the impact of the low-rate environment largely offset by management actions, lower wholesale funding costs and favourable funding mix.

Final dividend of $2.00 per share, taking the full year dividend to $3.50 per share fully franked, up 17 per cent from the prior year.  

Shares in Commonwealth Bank (ASX:CBA) are trading 1.5 per cent higher at $108.20.

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