Even though broadly retracing with other ASX listed companies, this ASX 100 bank stock has returned more than 23% in last one year. In the past one week, after bearing the blunt of market correction, it is more than 1% up. Apart from being the leader in banking sector, it is one of the best long term dividend stocks.
Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank of Australia (ASX: CBA) has recently issued important announcements, underscoring its financial stability and commitment to investors. One of the recent updates is the declaration of a new dividend distribution for the security CBAPJ, along with a dividend for CAP NOTE 3-BBSW+2.75% PERP NON-CUM RED T-06-29, amounting to AUD 1.211 per security. This distribution will be paid out on June 16, 2025, with the record date set for June 6, 2025, and the ex-date on June 5, 2025. These key dates are vital for investors to track in order to receive the upcoming payment.
Previously, CBA completed the sale of its remaining 4.4% shareholding in Vietnam International Commercial Joint Stock Bank (VIB) on March 5, 2025. The transaction, executed via the Ho Chi Minh Stock Exchange, amounted to approximately A$170 million in gross proceeds. This divestment has resulted in a slight uplift to CBA’s CET1 ratio, increasing it by about 3 basis points. This sale aligns with CBA’s ongoing strategy to optimize its assets and strengthen its balance sheet.
CBA’s focus on supporting customers and communities is evident in its recent efforts to address cost-of-living pressures. In the first half of FY25, the bank invested over $450 million to combat fraud, scams, and financial crimes, reducing customer scam losses by more than 70% in two years. The bank also introduced several innovative measures, such as the ‘BioCatch Trust’ pilot, which facilitates real-time, inter-bank intelligence sharing to prevent fraud. Moreover, CBA launched Australia's first GenAI-powered messaging service, offering customers faster and more personalized support, enhancing digital engagement across its platforms.
CBA continued to deliver strong performance for the half-year period ending December 31, 2024. It lent $21 billion to businesses and helped over 70,000 households purchase homes. The bank also paid more than $11 billion in interest to Australian savers, demonstrating its commitment to supporting the nation’s prosperity. The bank maintained a disciplined approach to managing its core businesses, increasing the total number of transaction accounts and strengthening its market position. CBA now holds more than 45% of the market share for proprietary home lending flow. This continued focus on technology, customer service, and operational efficiency has helped position CBA as a leader in both retail and business banking in Australia.
CBA’s overall performance for the first half of FY25 was solid, with a net profit after tax (NPAT) of $5,142 million, reflecting a 6% increase compared to the previous year. This result was driven by growth in core business volumes and lower loan impairment expenses, though partially offset by inflation-driven operating expenses and increased investment in the franchise.
(Source: Company Reports)
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