Shares of CBA have traded in a wide range in early trade today as investors react to the mixed full year result for the bank.
The bank announced a cash profit of $6.2 billion, which is a 5% drop from the previous year and largely attributed to the $700 million fine paid to AUSTRAC and other regulatory expenses.
CBA will pay a final dividend of $2.31 taking the full year payout to $4.31 per share.
It’s too early to tell if the drop in profit is due to “one-off” charges, or if the bank’s profit cycle has peaked. We remain cautious of the banking names and will revisit the sector’s valuation over the near term.
Todd has worked in the financial industry for 20 years. During this time, his primary focus has been in the Foreign Exchange, Global Equities and Fixed Income areas. Todd has also served as a Judicial Advocate in several tax cases in the US Federal Court.