Commonwealth Bank of Australia (ASX:CBA) has told investors that inflation was a key factor behind its 2% fall in profit in the 12 months to June 30, affecting the bank’s operating expenses, although this was offset by a lower loan impairment expense.
CBA’s net profit after tax for the 2024 fiscal year was $9,836 million – down 2% on FY23, as well as representing a 4% drop since the first half of the year, and the back said that volume growth in its core businesses could still be indicated by the overall figure.
Operating expenses came in at $12,218 million, with this being 3% increase from the previous fiscal year, as well as another 3% increase compared to the first half: and again inflation – plus an increased spend in technology to deliver strategic priorities – was behind the figure.
CBA also reported a dividend of $4.65 per share, fully franked – an increase of 3% from FY23.
CEO Matt Comyn said ordinary Australians were doing it tough in the current economic conditions.
“Our results demonstrate our continued focus on supporting our customers, our disciplined operational and strategic execution, and the strength of our balance sheet,” he said.
“Many Australians continue to be challenged by cost of living pressures and a fall in real household disposable income.
“With slower economic growth and moderating demand, our strong balance sheet allows us to continue to support our customers and the broader economy, and deliver sustainable returns.
“We have made it easier for our customers to access hardship assistance; provided eligible homeowner customers with the option to suspend mortgage repayments; and supported all customers with access to money management tools.”
CBA shares have been trading at $132.52.