SYDNEY–Commonwealth Bank of Australia, the largest bank in the country by market value, has announced an 8% decrease in its net profit for the first half of the year. The decline was attributed to higher operating expenses and intense competitive pressures. The bank has also issued a warning about anticipated higher loan arrears in 2024.
According to the bank’s statement on Wednesday, its net profit for the six months ending in December stood at 4.76 billion Australian dollars (US$3.07 billion).
Chief Executive Matt Comyn commented, “As cash rate increases have a lagged impact on households and business customers, we expect financial strain to continue in 2024, with an uptick in our arrears and impairments.”
The half-year cash earnings, which exclude certain items such as hedging and losses or gains on acquisitions and asset sales, witnessed a 3% decrease to A$5.02 from the previous year. Additionally, revenue dropped by 3% compared to the same period last year, amounting to A$13.58 billion.
The company’s directors have declared an interim dividend of A$2.15 per share, representing an increase from A$2.10 last year.
