News: CBA CBA Announces Intention To Conduct Further A$1 Bln On-Market Share Buy-Back

Aug 9 (Reuters) - Commonwealth Bank of Australia (CBA) :

• ANNOUNCING OUR INTENTION TO CONDUCT A FURTHER A$1 BILLION ON-MARKET SHARE BUY-BACK
• FY CASH NPAT A$10,164 MILLION VERSUS A$9,595 MILLION REPORTED LAST YEAR
• ANNOUNCES FINAL DIVIDEND OF 240 AU CENTS PER SHARE
• WELL PROVISIONED FOR THE CHANGING FINANCIAL CONDITIONS
• FY23 TROUBLESOME AND IMPAIRED ASSETS A$7.1 BILLION
• FY23 GROSS IMPAIRED ASSETS UP A$0.3 BILLION TO A$3.3 BILLION
• ARE SEEING CONSUMER DEMAND MODERATE AND ECONOMIC GROWTH SLOW
• SIGNS OF DOWNSIDE RISKS BUILDING AS RISING INTEREST RATES HAVE A LAGGED IMPACT ON MORTGAGE CUSTOMERS
• FY23 TOTAL IMPAIRMENT PROVISIONS A$5,950 MILLION
• SIGNS OF DOWNSIDE RISKS BUILDING AS RISING INTEREST RATES HAVE A LAGGED IMPACT ON MORTGAGE CUSTOMERS
• FY23 CONSUMER ARREARS HAVE INCREASED IN RECENT MONTHS BUT REMAIN HISTORICALLY LOW
• ON COMPLETION ON BUYBACK, THE BANK’S CET1 CAPITAL RATIO IS EXPECTED TO REDUCE BY APPROXIMATELY 20 BASIS POINTS
• CLOSELY MONITORING IMPACT OF REDUCED DISCRETIONARY SPEND, PARTICULARLY ON OUR SMALL AND MEDIUM SIZED BUSINESS CUSTOMERS
• IN NEXT FY SEE COMPETITION, CUSTOMER DEPOSIT SWITCHING AND HIGHER WHOLESALE FUNDING COSTS TO REMAIN MARGIN HEADWINDS
• TARGET A FULL YEAR DIVIDEND PAYOUT RATIO OF 70% TO 80%
• IN NEXT FY EXPECTS MARGIN HEADWINDS TO BE PARTLY OFFSET BY THE BENEFIT OF HIGHER AVERAGE CASH RATES
• AS AT FY END, HOME LOAN 90+ DAYS ARREARS WERE 0.47%
• WILL CONTINUE TO TARGET A FULL YEAR DIVIDEND PAYOUT RATIO OF 70-80% OF CASH NPAT

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