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Commonwealth Bank of Australia (CBA) has hiked its dividend after delivering a $5.1 billion first-half cash net profit, up 2 per cent from a year ago, against a weaker economic backdrop.
Australia’s largest bank will pay shareholders a dividend of $2.25 per share, fully franked, up 5 per cent from a year ago.
CBA’s net interest margin, a key gauge of profitability, was broadly stable at 2.08 per cent, up 0.02 per cent from a year ago.
The bank’s operating expenses rose to $6.4 billion, up 6 per cent from the previous six months, mainly driven by higher staff expenses due to inflation as well as additional expenses in generative artificial intelligence and data infrastructure.
CEO Matt Comyn said on Wednesday: “Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders despite the weaker economic backdrop.”
“Our consistent financial performance demonstrates our disciplined operational and strategic execution, and the bank’s deep customer relationships that help us understand needs and risks and deliver superior digital experiences.”
Comyn said cost of living pressures are weighing on consumer demand with younger customers in particular making “real” sacrifices.
“However, underlying inflation is now moderating towards the target range, and we expect Australia will follow offshore economies with an easing cycle starting in 2025.”
