CBA’s $3.9 billion profit sharpens returns for shareholders

The boss of the Commonwealth Bank says the economy is well-positioned for recovery, but the end of JobKeeper could stiffen the economic headwinds in the months ahead.

CBA announced a half-year cash profit of $3.9 billion, down 10% on the previous corresponding period, but nevertheless a robust result in the context of a global pandemic and ultra-low interest rates.

Chief Executive Matt Comyn has told Brooke Corte the bank’s reasonably strong performance has enabled it to return 67% of its profits to shareholders via a $1.50 per share fully-franked dividend.

“We certainly understand how difficult it is for shareholders, particularly retail shareholders, in a low interest rate environment,” Comyn said.

“We hope today’s dividend announcement is good news for them,”

Acknowledging the strength of Australia’s economic recovery to date, Comyn says there is cause to be optimistic about the future but concedes there are lingering concerns around the March to June quarter when JobKeeper expires.

“We do expect that quarter will be more challenging, we’ve been very pleased and we’ve been able to work closely with our customers on repayment deferrals,” Mr Comyn said.

“We also recognise that there will be customers that are going to need significant support because they continue to be impacted by the pandemic,”

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