CBA Reports Record Profit Amid Slowing Economy

Commonwealth Bank of Australia (CBA) has reported a massive annual profit, but its CEO warned that the economy is slowing down due to higher interest rates and inflation. The bank's statutory full-year net profit reached $10.9 billion, up seven per cent from last year, while cash net profit came in at $11 billion, also up seven per cent.

CBA's chief executive Matt Comyn noted that the Australian economy has remained resilient despite slowing growth, which is being driven by higher interest rates and inflation. Housing activity has softened due to federal government policy changes, but loan application numbers have stabilised in recent weeks.

The bank's results came after the Labor government's changes to negative gearing and capital gains tax concessions for property in the May budget. The Reserve Bank of Australia left interest rates on hold last week, but economists deemed it a 'hawkish hold' because the central bank expressed a bias toward future rate hikes.

CBA's net interest margin was 2.05 per cent, down three basis points from last year. The bank declared a final dividend of $2.70, taking the total for the year to $5.05, which is a four per cent improvement on the prior year.