Commonwealth Bank of Australia posted record second-half profit as earnings from wealth management rose and bad-debt costs shrank.
That beat the $3.5bn median estimate of seven analysts Bloomberg News surveyed by telephone and e-mail.
The shares fell as the bank refrained from paying a special dividend to maintain a capital level that CEO Ian Narev described as 'about right.' Narev has been withholding part of the central bank’s interest-rate cuts and trimming costs to bolster profit as loan growth cools amid a slowing economy.
'It is a high-quality result filled with positives such as revenue growth and higher trading income,' said Chris Weston, chief market strategist at IG Markets Ltd. in Melbourne. 'The one disappointment today was the dividend,' he said, adding that an annual payout ratio at 75.5% was below expectations.
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