The Commonwealth Bank of Australia (CBA) is expected to make an eye-watering profit of around $5 billion in just half a year when it announces its interim earnings ending on December 31 this Wednesday. This would make it the largest bank in Australia, and one of the most profitable in the world.
Analysts have been forecasting the cash profits of CBA and have all come to the conclusion that the profits will be around the $5 billion mark.
Bloomberg estimated the figure to be $5.17 billion, while CLSA market analyst Ed Henning predicted a $5.19 billion windfall and Jarden analyst Carlos Cacho anticipated a $5.2 billion profit.
CBA’s half-year results are expected to be boosted by the strong performance of its retail banking and wealth management divisions, as well as its global markets and corporate banking operations. The bank is also expected to benefit from the low interest rate environment, which has enabled it to keep its own borrowing costs low.
Analysts have also pointed to the fact that the bank has managed to cut costs and improve efficiency in its operations. This has enabled it to increase its profits while still providing quality services to its customers.
Bloomberg is anticipating a $2.09 dividend to be distributed to shareholders while CLSA is anticipating a more generous $2.10 payout. Citigroup, being more conservative, believes that a $2 per-share payment would be sufficient for the half-year dividend.