CBA attributed the increase in net profit for the financial year 2021 to lower loan impairment expense and a strong operational performance
Commonwealth Bank branch office. (Credit: Maksym Kozlenko/Wikipedia.)
Commonwealth Bank of Australia (CBA) has reported a net profit of A$8.7bn ($6.3bn) for the financial year (FY) 2021, a 20% rise compared to A$7.2bn ($5.3bn) for FY 2020.
Its net profit before tax for the reported period was A$12.2bn ($9bn), a 19% increase compared to A$10.2bn ($7.5bn) for the FY 2020.
CBA has reported a net interest income of A$18.8bn ($13.7bn) for FY 2021, a 1% rise compared to A$18.6bn ($13.6bn) for the last year.
The bank has reported a return on equity (RoE) of 11.5% for FY 2021, which increased by 130 base points compared to 10.2% for FY 2020
CBA attributed the increase in net profit to improved economic conditions and outlook resulting in a lower loan impairment expense and a strong operational performance.
Commonwealth Bank CEO Matt Comyn said the ability to return capital and pay a $3.50 total dividend reflected the success of executing the Group’s strategy as well as the ongoing strong operational performance of the core businesses of retail, business and institutional banking.
Comyn added: “We are focused on continuing to make progress on our more ambitious strategy – building tomorrow’s bank today for our customers.
“Reimagining banking through new products and partnerships that will support our customers and help build Australia’s future economy, while focused on disciplined execution and investing in digital and technology capability.”
CBA’s Retail Banking Services business reported a net profit of A$4.8bn ($3.5bn) for the FY 2021, a 16% increase compared to A$4.1bn ($3bn) for FY 2020.
Its Business Banking division reported a net profit of A$2.8bn ($2bn) for the FY 2021, an increase of 11% compared to A$2.5bn ($1.8bn) for the previous year.
The bank’s Institutional Banking and Markets division reported a net profit of A$922m ($675m) for the FY 2021, a 46% increase compared to A$633m ($464m) for FY 2020.
The company has announced a final dividend of A$2 ($1.4) per share, fully franked, taking the full-year dividend to A$3.50 ($2.5).