Shares of CBA have traded in a wide range in early trade today as investors react to the mixed full year result for the bank.
The bank announced a cash profit of $6.2 billion, which is a 5% drop from the previous year and largely attributed to the $700 million fine paid to AUSTRAC and other regulatory expenses.
CBA will pay a final dividend of $2.31 taking the full year payout to $4.31 per share.
It’s too early to tell if the drop in profit is due to “one-off” charges, or if the bank’s profit cycle has peaked. We remain cautious of the banking names and will revisit the sector’s valuation over the near term.