Commonwealth Bank of Australia (CBA) attributed the decline in the first-half net income to low-interest rates and economic impact of Covid-19
Commonwealth Bank of Australia (CBA) has reported a net profit after tax of A$3.89bn ($3bn) for the first half (H1) of 2020, an 11% decrease compared to A$4.35bn ($3.3bn) for the same period the previous year.
The bank reported a net interest income of A$9.37bn for the H1 2020, which almost remained unchanged compared to A$9.35bn for H1 2019.
The Australian bank reported a statutory net profit of A$4.87bn for H1 2020, a 21% decrease compared to A$6.16bn for the same period the prior year.
CBA reported a total operating income of A$11.96bn for H1 2020, a 1% decrease compared to A$12.03bn for the H1 2019.
The bank attributed the decline in net income to the low-interest rates and economic impact of Covid-19 and has enhanced its support for customers affected by the pandemic.
Commonwealth Bank chief executive officer Matt Comyn said: “The bank’s strong financial performance amidst the current economic environment means it is uniquely placed to respond to the rapidly changing operating context while continuing to support its customers.
“We have refreshed our strategic priorities to build on our strong foundations and position us for the future. This is an evolutionary change to enable the bank to focus on the new challenges and opportunities ahead. We have set an ambitious agenda and are committed to building tomorrow’s bank today for our customers.
“Australia is relatively well-positioned having started from a position of fiscal and economic strength. We have a solid pipeline of infrastructure projects, the outlook for mining and agriculture exports is strong, and the community has benefitted from the Government’s significant income support measures.”
The Retail Banking Services arm of the firm reported a net income of A$2.19bn for H1 2020, a 3% decrease compared to A$2.25bn for the same period the previous year.
CBA’s Business Banking division reported a net profit of $1.33bn for H1 2020, a decline of 4% compared to $1.39bn for the same period in 2019.
The company’s Institutional Banking and Markets division reported a net income of A$423m for H1 2020, a decrease of 9% compared to A$465m for H1 2019.
The International Financial Services business made a profit of A$127m for H1 2020, an increase of 30% compared to A$98m for the same period the previous year.
CBA’s Corporate Centre reported a net loss of A$737m for H1 2020, compared to a net loss of A$387m for the same period in 2019.