Commonwealth Bank (ASX:CBA) is the nation’s largest bank by market capitalisation, holds the greatest amount of deposits, the most home loans, and also controls a fair chunk of the wealth management market with its Colonial First State behemoth.
Today, CBA reported a FY11 cash profit of $6.84 billion, up 12% from the prior year. The profit growth helped return on equity improve to 19.5%.
The result slightly topped analyst estimates of a $6.82 billion profit, whilst its final dividend of $1.88 also came in ahead of expectations.
Net interest margin of 2.19% was up from 2.13% in the FY10, with the group improving its funding mix.
CBA warned that credit growth was likely to remain slow over the next few months and that funding costs could rise due to the recent market turmoil.
The bleak outlook didn’t have a negative impact on CBA shares, which have opened solidly higher.