CBAâs three hurdles to buybacks and bigger dividends
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Commonwealth Bank CEO Matt Comyn revealed the bank is facing three obstacles to share buybacks and even bigger dividends as it announced a $3.9 billion cash profit on Wednesday and around $10 billion in excess capital.
CBA is poised to shower shareholders with as much as $2.7 billion in dividends in late March, after raising the first-half distribution by 53 per cent to $1.50 a share compared with the previous half.
However, the payout ratio of 67 per cent is just below the bankâs target range of between 70 per cent and 80 per cent, and Mr Comyn said the boardâs intention is to continue the tradition of delivering a bigger second-half dividend. But a number of hurdles remain.