Commonwealth Bank has recorded its first profit dip in almost a decade. Picture: AAP/Joel Carrett
Commonwealth Bank has recorded its first profit dip in almost a decade. Picture: AAP/Joel Carrett

CBA records first profit dip in over a decade

COMMONWEALTH Bank has reported a fall in annual profit after a challenging year.

Cash net profit from continuing operations dropped 4.8 per cent to $9.233 billion in 2017/18.

The decline was mostly driven by a $700 million penalty paid to AUSTRAC after it breached anti-money laundering laws.

The bank was also hit by $155 million in costs relating to the banking royal commission.

It is CBA's first annual profit drop since 2009.

CBA chief executive Matt Comyn said the bank's business fundamentals remained strong despite the challenges.

 

Commonwealth Bank has recorded its first profit dip in almost a decade. Picture: AAP/Dave Hunt
Commonwealth Bank has recorded its first profit dip in almost a decade. Picture: AAP/Dave Hunt

"Operating momentum was driven by our core franchise which delivered good volume margin management in home and business lending, ongoing growth in transaction accounts and deposits, and continued uptake of our technology offering," he said in a statement.

"We also continued to strengthen our balance sheet. This performance has supported a higher dividend for shareholders."

CBA will pay a final dividend of $2.31 per share, taking the full year payout to $4.31 and two cents higher than last year.

The nation's largest bank's drop in annual unaudited cash profit is expected to drive financial stocks lower.

It has been a challenging year for CBA as it has paid massive penalties for dodgy practices and copped a blow to its reputation from the royal commission into financial sector misconduct.


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