Commonwealth Bank of Australia (ASX:CBA) released its full year results for FY2015 this morning, logging a Group statutory net profit after tax of $9,063 million, representing a 5 per cent increase on the previous corresponding year. The group also announced a $5 billion proposed capital raising via a pro-rata renounceable entitlement offer for all shareholders.
The company announced its final dividend of $2.22 per share, representing an increase of 2 per cent on the 2014 final dividend and bringing the full year dividend to $4.20, an increase of 5 per cent. The dividend is fully franked and will be paid on 1 October 2015 with an ex-dividend date of 18 August 2015.
The group maintained a strong balance sheet throughout the year including high levels of capital, however a capital raising has been announced in order to meet future requirements set by APRA in July 2015. The group aims to raise $5 billion in order to meet requirement changes to average mortgage risk weights for Australian residential mortgages.
Group CEO, Ian Narev commented: “Over many years now we have pursued a simple, consistent strategy. This result shows that execution of that strategy continues to deliver well for our customers and our shareholders. This financial year saw all-time highs in retail customer satisfaction, with the group returning to the number one position at the year-end, and ongoing high levels of customer satisfaction in our other businesses. As a result, our balance sheet continued to grow, and combined with ongoing margin discipline, this resulted in good levels of revenue growth given market conditions. We also maintained our focus on productivity, which is particularly important given increasing levels of regulatory and compliance costs.”
CBA has long been the go to blue chip stock for Australian investors. The company has performed well over the long term and recently on par with expectations. Recent declines have largely been a result of changes to capital regulations and the financial sector has suffered as a whole. CBA is on a trading halt today, pending an announcement regarding its proposed pro-rata accelerated renounceable entitlement offer.
Author: Ben Visser
Aug 12, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.