Commonwealth Bank of Australia has posted the biggest annual profit ever reported by an Australian bank.
CBA’s cash profit for the 12 months to June 30 was $7.8 billion, 10 per cent up on last year’s $7.1 billion result, and beating analysts’ expectations by around $200 million.
Investors will pocket a final dividend of $2 a share, taking the payout for the year to $3.64.
Although the result comes at a time when there are growing concerns about the strength of the Australian economy, chief executive Ian Narev was upbeat in his assessment of the year ahead.
“Competition will remain strong in all our businesses, both from traditional financial services competitors and new technology-enabled business models,” Mr Narev said in statement.
“So overall, we believe that the underlying conditions for our business in the 2014 financial year will be similar to those we have experienced in the recently completed year.
“However, we are well-positioned to meet the needs of our customers should the economy rebound more quickly than anticipated.”
“This result again highlights the benefits of a multi-year focus on our strategic priorities. During this financial year, the Group achieved a six-year goal of becoming the market leader in customer satisfaction, completed the six-year implementation of Core Banking Modernisation, maintained a careful balance between volume growth and margin, strengthened our balance sheet and
continued our focus on building a high integrity and collaborative culture. Consistent execution of these long-term priorities, combined with our focus on productivity and continuing innovation, have delivered good financial returns for our shareholders. We have momentum in all of our businesses, due to the hard work of our people and their commitment to enhancing the financial wellbeing of our customers.”