CBA full-year cash profit down 5pc
Commonwealth Bank has posted a drop in annual cash profit of $9.23 billion, hit by a $700 million fine after the nation's biggest bank broke anti-money laundering laws.
Mentioned: Commonwealth Bank of Australia (CBA)
Commonwealth Bank (ASX: CBA) has posted a drop in annual cash profit of $9.23 billion, hit by a $700 million fine after the nation's biggest bank broke anti-money laundering laws.
The profit drop was primarily due to the $700 million penalty paid to AUSTRAC, the largest in Australian corporate history, after CBA admitted to 53,700 breaches of anti-money laundering and counter-terrorism funding laws.
The bank was also hit by $155 million in costs relating to the banking royal commission.
CBA chief executive Matt Comyn said it has been a "difficult" 12 months, but the bank's business fundamentals remained strong.
Mr Comyn, who took the helm from Ian Narev four months ago, said the bank is simplifying its portfolio, operating model and processes to improve its performance.
"We are building a simpler, better bank, " he said in a statement on Wednesday.
CBA is splitting with its wealth management and mortgage broking businesses following a series of industry scandals.
The anti-money laundering scandal led to Mr Narev's departure as CEO.
CBA will pay a final dividend of $2.31 a share, taking the full year payout to $4.31 a share.
Profit drops
- Cash profit down 4.8pct to $9.233b
- Net profit down 6pct to $9.329b
- Total operating income $25.9b, up 2.6pct
- Final dividend up one cent to $2.31 a share, fully franked, taking the total for the full year to $4.31
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