CBA announce $2.57 billion first half profit
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The Commonwealth Bank announced a profit of $2.57 billion, a rise of 9% in the toughest banking conditions in two decades for the economy.
The first half profit was a surprising result considering the low expectations for the domestic banking sector which is outperforming the major banks of the world.
CBA have maintained a dividend of $1.23 but flagged that future cuts may be considered based on a deteriorating domestic economy in the second half. With a tier 1 capital of 8.75% the bank is in a healthy position which will enable it to maintain a solid balance sheet but that alone will not stop higher impairment costs going forward.
The result of the remaining banks will be interesting to see if the same message is passed on that dividends are under threat, perhaps Westpac may be in a position to give a succint and accurate assessment of it’s future prospects when it reports.
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