CommBank shows profit growth across the board
The Commonwealth Bank of Australia has recently improved its performance across areas including company profits, operating income, capital position and customer deposits.
For the half year, up until the end of December 2015, CommBank’s statutory net profit after tax (NPAT) was up by 2% to $4,618 million and its cash net profit after tax had risen even further, up by 4% to $4,804 million.
Its interim dividend remained unchanged at $1.98 per share, with a payout ratio of 70.8% of the cash NPAT. The fully franked interim dividend is expected to be paid on 31 March this year, while the ex-dividend date has been set at 16 February.
The CommBank Board has decided to continue operation of its Dividend Reinvestment Plan, although shares issued under the plan won’t be eligible for a discount.
These improvements come just after CommBank improved its customer satisfaction by 0.7% - topping the other major banks, ANZ, Westpac and NAB.
CommBank Group Chief Executive Officer, Ian Narev, stressed CommBank’s customer driven approach, saying, “Our focus on customers has continued during this period to benefit the people, businesses and communities we exist to serve. Our people remain the key to our on-going success.”
He also championed prioritised investment in innovative technology, citing a significant uptake of CommBank’s digital and mobile offerings, including Cardless Cash, Tap & Pay, and the CommBank app, which offers features like loyalty card storage, portfolio view, and special merchant offers. The use of Cardless Cash alone increased by 96% in the half year period.
Narev emphasised the importance of stability and long-term sustainability to both CommBank and its customers. He said, “global volatility concerns our customers, and presents challenges here in Australia. We must be cautious, but also remain focused on the long-term to ensure that Australia remains a great place to live and to invest.”
“We are confident that our long-term strategy remains the right one. We are intensely focused on our vision to secure and enhance the financial wellbeing of people, businesses and communities."
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