From BBY:
CBA reported cash NPAT of $4268M and a dividend of $1.83 which compared to our forecast of $4135M.
Income growth was 6% from 2H13 to 1H14 compared to expense growth of 5% over the same period. The net interest margin (NIM) fell from 2.17% in 2H13 to 2.14% in 1H14. This was caused by an additional $6B in average cash and liquids which earned an average of 0.8% p.a.
Some of the more interesting elements effecting income were:
1. Trading income was $508M in 1H14 compared to $420M in 2H13 and $443M in 1H13
2. Funds management income was $1003M in 1H14 compared to $944M in 2H13
3. Commissions were $1081M in 1H14 compared to $997M in 2H13
These factors provided $208M in income growth over the period compared to total income growth of $616M. The rest was largely provided by the 4% growth in average loans from 2H13 to 1H14.
Asset quality continued to show positive trends with gross impaired loans falling from $4.3B at 30/6/13 to $3.9B at 31/12/13 and new impaired loans falling by 10% from 2H13 to 1H14. The bad debt charge fell slightly. The adverse part was the increase in commercial past due loans.
