Commonwealth Bank Building

Commonwealth Bank (ASX: CBA) has posted a drop in annual cash profit of $9.23 billion, hit by a $700 million fine after the nation's biggest bank broke anti-money laundering laws.

The profit drop was primarily due to the $700 million penalty paid to AUSTRAC, the largest in Australian corporate history, after CBA admitted to 53,700 breaches of anti-money laundering and counter-terrorism funding laws.

The bank was also hit by $155 million in costs relating to the banking royal commission.

CBA chief executive Matt Comyn said it has been a "difficult" 12 months, but the bank's business fundamentals remained strong.

Mr Comyn, who took the helm from Ian Narev four months ago, said the bank is simplifying its portfolio, operating model and processes to improve its performance.

"We are building a simpler, better bank, " he said in a statement on Wednesday.

CBA is splitting with its wealth management and mortgage broking businesses following a series of industry scandals.

The anti-money laundering scandal led to Mr Narev's departure as CEO.

CBA will pay a final dividend of $2.31 a share, taking the full year payout to $4.31 a share.

Profit drops

  • Cash profit down 4.8pct to $9.233b
  • Net profit down 6pct to $9.329b
  • Total operating income $25.9b, up 2.6pct
  • Final dividend up one cent to $2.31 a share, fully franked, taking the total for the full year to $4.31

 

More from Morningstar

• Trade frictions and other global investment concerns

• Transurban profit doubles as revenue rises

 Make better investment decisions with Morningstar Premium | Free 4-week trial

 

AAP logo image

© [2018] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.