Commonwealth Bank of Australia Posts Higher Annual Profit

Commonwealth Bank of Australia CMWAY reported a 13% rise in its annual earnings. Its net profit jumped to 8.63 billion Australian dollars (US$8 billion) versus A$7.62 billion in the year-ago period. CBA's full-year cash profit surged to A$8.7 billion ($8 billion), in line with estimates. It also declared a final dividend of A$2.18 a share. Home lending increased 6.7% versus the industry average of 6.2%. The bank's net interest margin widened 1 basis point to 2.14% in the year. Cash Return on Equity came in at 18.7%. New impaired assets dropped by 21% in the fiscal year from the previous year. Customer deposits rose AU$34 billion to AU$439 billion. Group Chief Executive Officer, Ian Narev said, “This result benefits a wide range of stakeholders, and we are proud of the role we have continued to play in building a strong Australia. During this financial year, we lent over $130 billion to Australian households and businesses, held $26 billion more deposits, and increased the investments we helped manage by over $20 billion.” Commonwealth Bank shares gained 1.28% to close at $75.58 yesterday.