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Australia's CBA H1 cash profit up 4 pct, dividends flat

Published 10/02/2016, 08:47 am
Updated 10/02/2016, 08:50 am
© Reuters.  Australia's CBA H1 cash profit up 4 pct, dividends flat
CBA
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SYDNEY, Feb 10 (Reuters) - Commonwealth Bank of Australia CBA.AX , the country's top mortgage lender, on Wednesday posted a 4 percent gain in first-half cash profit, in line with expectations, while revenues slipped and loan impairment expenses increased.

Cash profit for the six months ended Dec. 31 rose to a record A$4.80 billion ($3.39 billion) compared with A$4.62 billion a year ago and A$4.77 billion estimate of six analysts polled by Reuters.

The board declared a dividend of A$1.98 a share, unchanged from a year ago. Net interest margin, a key gauge of profitability for banks, remained flat at 2.06 percent.

Australia's four major banks posted their sixth straight year of record profits last year but rising bad debt charges, pressure on margins as well as stricter capital rules are clouding growth outlook. ($1 = 1.4150 Australian dollars)

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