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Commonwealth Bank Of Australia Provides Update On One-off Items Impacting H2 Results

Commonwealth Bank of Australia (CBA.AX), in an update on the one-off items impacting the the second half of 2022 results, said it has recognized one-off expense items of A$445 million (pre-tax) during the second half of the 2022 financial year, A$389 million relates to the acceleration of amortization on certain capitalized software as at June 2022. Other provisions of A$56 million were also recognized relating to changes in the Group's operating model.

The impact of the one-off items is broadly offsetting on cash net profit after tax for the full year ended 30 June 2022.

CBA had completed the sale of a 10% shareholding in the Bank of Hangzhou Co., Ltd (HZB) to Hangzhou Urban Construction & Investment Group Co., Ltd and Hangzhou Communications Investment Group Co., Ltd, which are entities majority-owned by the Hangzhou Municipal Government.

The company noted that the transaction has delivered a pre-tax gain of A$516 million which was recognized in the Group's cash net profit before tax and included within other banking income. The sale resulted in an increase in the Group's CET1 capital ratio by 35 basis points.

According to the company, the remaining 5.6% investment in HZB is now treated as a strategic equity investment, with gains and losses recognized within the Statement of Comprehensive Income, and as a result the Group will no longer recognize its share of profits from HZB as an associate within other banking income.

Commonwealth Bank of Australia is scheduled to announce its full year results on 10 August 2022.

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