CBA reports 26% profit increase

The Commonwealth Bank has reported a 26% increase in statutory net profit after tax to $4,741 million.

The bank’s cash net profit after tax was up 23% to $4,746 million which it said was due to above system growth in all core markets, lower collective provisions from an improvement in the economic outlook and a reduction in remediation expenses.

The half-year result has prompted the board to declare a fully franked dividend of $1.75 per share.

Commenting on the result, the bank’s chief executive, Matt Comyn said the firm expected the Australian economy to have a strong year in 2022 despite early challenges from the Omicron strain.

However, he noted that the Commonwealth Bank Economics team was forecasting a modest modesty monetary policy tightening cycle through the new financial year, with the first official interest rate increase forecast for August, this year.