The biggest company on the ASX, Commonwealth Bank (ASX:CBA) delivered a good set of half-year results for the period ending 31 December 2020.
The $155 billion company reported its profit fell 21% (less than the market feared).
Headline profit after tax hit $4.877 billion in the half-year to 31 December, which beat both the market expectation of $3.832 billion and Bell Potter’s expectation of $4.035 billion.
CBA’s result was stronger than the market forecasted because business lending grew, home lending rose 3% and customer deposits rose 11%.
CBA reported its net interest margin continued to fall, falling 0.03% to a 2% profit in the half year – largely weighted by the record low interest rates.
CBA declared a half year dividend of $1.50 per share, also beating market expectations. This reflects that CBA has surplus cash from the sale of life insurance business is willing to pay out 67% of its cash earnings.
CBA shares have gained 61% from their COVID-19 low.
CBA is a UBS, Citi and Credit Suisse hold stock.