CBA to pay a dividend despite 11.3% fall in profit
The Commonwealth Bank has booked a $7.3 billion profit amid the worst economic crisis since the great depression, however, the result is 11.3 per cent lower than last year.
Despite facing stiff headwinds, the bank will pay shareholders a 98 cent dividend, significantly lower than the $2.31 it paid out last year but still a welcome number for struggling self-funded retirees who rely on bank dividends for income.
Speaking with Money News host Brooke Corte, Commonwealth Bank CEO Matt Comyn acknowledges the dividend payment is down on previous years but still came in above expectations
“We wanted to recognise the almost 900,000 Australian households who hold our shares directly, we recognise how important our dividend is to them,” he said.
Recently, the powerful banking regulator APRA forced banks to cap dividend payments at 50 per cent of earnings.
Today, CBA’s dividend came in at 49.95 per cent of statutory earnings.
Could the bank have paid out more if the regulator had not clipped its wings?
“We would have had the capacity to,” Mr Comyn said.
Click play to hear the full interview: