by Chris Becker
The largest division of Megabank has suffered a four percent drop in net profit for the year, down below $10 billion.
Mainly down to nearly criminal activity of course.
From the ABC:
CBA’s result was affected by a $700 million civil penalty it paid to the Australian Transaction Reports and Analysis Centre (AUSTRAC), to settle a money-laundering case brought by the agency last year.
Its profit was also affected by $389m in “risk and compliance provisions” and “one-off-regulatory costs” — resulting from an ASIC investigation, shareholder class actions, the AUSTRAC proceedings, the royal commission and the APRA inquiry.
In total, the bank spent $1.1b defending itself in several lawsuits and hearings.
Not exactly the bottom line you want to read about when it comes to what was the premier publicly owned bank of the Commonwealth.
Here’s a closer look at the figures, from the presentation:
Still a stellar, tax-supported Return on Equity (ROE) more in line with a growth company, not a residential mortgage provider. And have to keep that dividend gravy train going despite continued “one-off” major costs to the capital base:
Net interest margin suffered in the second half, but still elevated compared to FY17, with the hold on rates from the RBA not hurting margins at all:
Small rise in arrears, this has been a trend for sometime, but not yet worrisome:
There maybe more “one-off” costs coming around the corner as the Royal Commission looks into superannuation next.