CBA in $10b cash splash

Commonwealth Bank of Australia will return almost $10 billion to shareholders through buybacks and dividends after reporting a 19.8 per cent increase in cash profit to $8.65 billion, as it expects the economy to “rebound” later this year.

The full-year result has been underpinned by strong housing markets and demand for capital by companies, with double-digit net profit growth across its key divisions of retail and business banking and a steep reduction in loan impairments and provisions.

The bank will also commence a $6 billion off-market buyback supported by $2.1 billion in franking credits as foreshadowed.

CBA shares hit a record $109.03 this morning to help the S&P/ASX 200 climb 0.5 per cent to an all-time high of 7602 points in early trade.

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