CBA 1st Half Profit Falls 8%, Raises Dividend

By Alice Uribe

SYDNEY--Commonwealth Bank of Australia posted an 8% fall in half-year net profit, driven partly by higher operating expenses and competitive pressures, with the lender warning of higher loan arrears in 2024.

The bank, Australia's biggest by market value, said Wednesday that its net profit fell to 4.76 billion Australian dollars (US$3.07 billion) in the six months through December.

"As cash rate increases have a lagged impact on households and business customers, we expect financial strain to continue in 2024, with an uptick in our arrears and impairments," said Chief Executive Matt Comyn.

Half-year cash earnings--the measure that strips out items including hedging and losses or gains on acquisitions and asset sales--fell by 3% to A$5.02 billion from the previous year. Revenue fell by 3% on year to A$13.58 billion.

Directors of the company declared an interim dividend of A$2.15 a share, up from A$2.10 last year.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

February 13, 2024 16:06 ET (21:06 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.