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Reporting Season 12th August 2020

Commonwealth Bank (ASX:CBA) Reporting Season Results

The biggest company on the ASX, CBA (ASX:CBA) delivered its FY20 results. Here's what you need to know.

CBA’s statutory profit rose 12.4% to $9.6 billion, beating expectations. At a closer look its cash net profit, which was closely watched fell 11.3% to $7.3 billion, slightly off expectations due to higher costs. Its net interest margin from continuing operations fell, given the record low interest rates.

CBA declared a final dividend of 98 cents per share, which beat UBS, Citi and Bell Potter's expectations. This reflects that CBA has surplus cash and is willing to pay out 50% of its second half earnings of $3.5 billion, which was also again ahead of expectations. The stock goes ex-dividend on the 19th of August.

CBA shares have gained 28% from their COVID-19 low, its shares rallied after the results but then fell into the red today as investors digested the result. CBA is a UBS and Citi hold, while it’s a Bell Potter buy.