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Commonwealth Bank Of Australia HY Profit Down 20.8%

Commonwealth Bank of Australia (CBA.AX) reported that its net profit after tax for the half year ended 31 December 2020 was A$4.88 billion, down 20.8% from last year, mainly due to lower gains realized in the period on the sale of businesses.

Cash net profit after tax from continuing operations was A$3.89 billion, down 10.8% from the prior year. Excluding COVID-19 impacts and remediation costs, cash net profit after tax was broadly flat.

Operating income was A$11.96 billion, down 0.5%, due to the impact of COVID-19 and lower net interest margin, partly offset by core volume growth.

Net interest income of A$9.37 billion was flat, with strong volume growth across core banking businesses helping to offset the impact on net interest margin of lower interest rates and heightened competition.

Total banking income was A$11.73 billion, down 2 percent from the prior year.

The bank declared an interim dividend of A$1.50 per share. It represented a cash payout ratio of 67%, below the Board target payout range.

Commonwealth Bank of Australia reported a significant drop in its number of home and business loan repayment deferrals.

Over 70 per cent of customers who had deferred the repayments on their home loan due to the challenges associated with COVID-19 have now returned to their pre-deferral terms.

As at 31 December 2020, 1.4 percent of the bank's home lending portfolio had a repayment deferral arrangement in place - down from 8 per cent six months earlier.

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