News: CBA CBA HY Cash NPAT Rises 23%, Announces A$2 Bln Buyback

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

• DECLARES INTERIM DIVIDEND OF A$1.75 PER SHARE
• HY NET INTEREST MARGIN 1.92%
• HY STATUTORY NPAT WAS A$4,741 MILLION, UP 26%
• CET1 RATIO 11.8% AT DEC-END
• HY CASH NPAT A$4,746 MILLION, UP 23% ON 1H21
• EXCLUDING IMPACT FROM INCREASED LOWER YIELDING LIQUID ASSETS, HY NIM DECREASED 5 BPS
• EXPECT THE AUSTRALIAN ECONOMY TO HAVE A STRONG YEAR IN 2022 DESPITE EARLY CHALLENGES FROM THE OMICRON STRAIN OF COVID-19
• HY CORPORATE TROUBLESOME ASSETS DECREASED BY A$0.8 BILLION ON PRIOR HALF
• CBA ECONOMICS TEAM’S FORECAST IS FOR A FIRST OFFICIAL INTEREST RATE INCREASE FORECAST FOR AUGUST 2022
• INFLATIONARY RISK DOES NOT CURRENTLY APPEAR AS HIGH IN AUSTRALIA RELATIVE TO GLOBAL PEER NATIONS
• CONTINUE CAPITAL MANAGEMENT ACTIONS WITH A$2 BILLION ON-MARKET SHARE BUY-BACK
• HY TOTAL IMPAIRMENT PROVISIONS WERE A$5,854 MILLION, A DECREASE OF A$961 MILLION AGAINST 1H21
• BANKING BUSINESSES CONTINUED TO PERFORM WELL IN A LOW RATE ENVIRONMENT
• EXPECT HOME LOAN PRICE COMPETITION AND SWITCHING TO CONTINUE TO WEIGH ON MARGINS IN SECOND HALF
• CBA ECONOMICS TEAM’S FORECAST IS FOR A MODEST MONETARY POLICY TIGHTENING CYCLE THROUGH FY23
• BUY-BACK IS EXPECTED TO REDUCE CET1 CAPITAL RATIO BY APPROXIMATELY 42 BASIS POINTS
• WILL CONTINUE TO TARGET A FULL YEAR PAYOUT RATIO OF 70-80% OF CASH NPAT
• HY LOAN IMPAIRMENT BENEFIT A$75 MILLION
• HY NET INTEREST INCOME FROM CONT OPS A$9,748 MILLION VS A$9,600 MILLION