Yahoo Finance Major bank makes $5bn cash profit
The Commonwealth Bank has recorded a cash profit of $5bn after closing 354 branches and removing 2,297 ATMs across the country in just five years.
The half yearly results for the six months ending December 31, 2023, saw the bank’s cash profit drop three per cent lower than previous six month period in 2023.
CBA chief executive Matt Comyn explained the cost of inflation and a competitive operating environment had resulted in the dip in net profit.
“We have consistently executed our customer-focused strategy,” he said.
“Our balance sheet remains strong with high levels of provision coverage, surplus capital and conservative funding metrics.
“This ensures we have capacity to support our customers, manage potential headwinds and deliver sustainable returns to our shareholders.
“We remain optimistic about the outlook for the Australian economy and we remain focused on executing our strategy.”
Mr Comyn said 2023 was challenging for all Australians as cost of living pressures continued to leave its mark across many sectors.
“The fundamentals of the Australian economy remain strong,” he said.
“We recognise though that all households are feeling the impact of higher inflation and higher rates.
“Our base case remains a soft landing and we expecting these pressures to ease as inflation and interest rates start coming down later this year.”
Mr Comyn said the challenging year saw Australia’s largest bank ensure it found ways to strengthen its position as best it could given the fluctuating economy.
“Our lower cash profit reflects cost inflation and competitive operating environment,” he said.
“We further strengthened our balance sheet, with high levels of provision coverage, surplus capital and conservative funding metrics.
“This ensures that we are well positioned to support our customers, manage potential headwinds and deliver long-term sustainable returns to our shareholders.
Shareholders will receive $2.15 share interim dividend which will be fully franked.
The announcement comes after Commonwealth Bank continues to close branches across the country
There will be 354 branches closing and removing 2,297 ATMs across the country in just five years.
Three branches will be shut before March 1, including Rundle Mall in Adelaide, Coolangatta on the Gold Coast and Coogee in Sydney’s east.
The move comes as the number of branches in major cities and metropolitan areas reduced by 39 per cent in the last six years, a federal senate inquiry in December 2023 was told.
