CBA 1H19 result for the half year ended 31 December 2018 1,2
Unless otherwise stated: all figures relate to the half year ended 31 December 2018 and comparisons are to the prior comparative period (pcp), the half year ended 31 December 2017; financials are presented on a continuing operations basis.
Becoming a simpler, better bank
“CBA continued to deliver strong core business outcomes in a challenging period. The highlights included robust transaction deposit growth and strengthened balance sheet resilience with the Bank now above ‘unquestionably strong’ capital requirements. We maintained our focus on being best in digital and achieved leading rankings for the CommBank mobile banking app and for digital customer advocacy. We are also on track to deliver a more focused portfolio of businesses in line with our competitive advantages.
Our transformation to be a simpler, better bank is well underway. We will continue to take action to address issues, earn trust and be a better bank for our customers, as we strengthen risk management, invest in core business growth, and deliver long-term sustainable returns for shareholders.” - Chief Executive Officer, Matt Comyn
- Statutory net profit after tax (NPAT) including discontinued operations of $4,599 million.3
- Cash NPAT from continuing operations of $4,676 million, up 1.7%.
- Operating income of $12,408 million, down 1.9%, with volume growth offset by lower net interest margin, lower Markets and fee income, and the impact of weather events.
- Net interest margin of 2.10%, 4 basis points lower than 2H18, due to higher funding costs and home loan switching and competition.
- Operating expenses of $5,289 million, a reduction of 3.1%, with elevated risk, compliance and remediation costs offset by prior period one-offs.
- Loan impairment expense of $577 million, equivalent to 15 basis points of average gross loans and acceptances annualised, down from 16 basis points.
- Effective tax rate of 28.5%, expected to rise to approximately 29% for FY19.
- Interim dividend per share flat at $2.00. The Dividend Reinvestment Plan is anticipated to be satisfied in full by an on-market purchase of shares.
- Earnings per share (cash basic) of 265.2 cents, an increase of 0.9 cents per share.
- Return on equity (cash) of 13.8%, down 40 basis points.
- Common Equity Tier 1 (CET1) capital ratio on an APRA basis of 10.8%, up from 10.1% as at June 2018.4
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1 Comparative information has been restated to conform to presentation in the current period.
2 Unless otherwise stated the financials are presented on a continuing operations basis. For details of discontinued and continuing operations see Attachment 1 page vi for details.
3 For an explanation of and reconciliation between statutory and cash NPAT, refer to page 4 of the Profit Announcement.
4 Includes discontinued operations.