CBA Cash net profit from continuing operations dropped 4.8 per cent to $9.233 billion in 2017/18.
The decline was mostly driven by a $700 million penalty paid to AUSTRAC after it breached anti-money laundering laws.
The bank was also hit by $155 million in costs relating to the banking royal commission.
It is CBA’s first annual profit drop since 2009.
CBA chief executive Matt Comyn said the bank’s business fundamentals remained strong despite the challenges.
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“Operating momentum was driven by our core franchise which delivered good volume margin management in home and business lending, ongoing growth in transaction accounts and deposits, and continued uptake of our technology offering,” he said in a statement.
“We also continued to strengthen our balance sheet. This performance has supported a higher dividend for shareholders.”
CBA will pay a final dividend of $2.31 per share, taking the full year payout to $4.31 and two cents higher than last year.
The nation’s largest bank’s drop in annual unaudited cash profit is expected to drive financial stocks lower.
AMP’s first-half profit dropped to $115 million after the company set aside $290 million to refund and compensate customers it overcharged for financial advice.
The financial advice group’s revenue for the six months to June 30 was down six per cent to $7.17 billion.
AMP declared an interim dividend of 10 cents per security, franked at 50 per cent.
AMP’s result is the first since damaging revelations at the banking royal commission that the group charged customers for advice and misled the regulator. The revelations claimed the jobs of former CEO Craig Meller and chairman Catherine Brenner.
AMP’s underlying profit – excluding the compensation provisions – was $495 million, down from $533 million.
AMP acting CEO Mike Wilkins said the results “demonstrated AMP’s resilience through a difficult period”.
“While there will be further challenges ahead, we have a strong foundation on which to reset the business and restore the confidence of our customers and the wider community,” he said.
“The events around the royal commission into financial services have challenged our reputation, and while we continue to monitor the impacts, we have taken action to stabilise the business and move forward.”