Commonwealth Bank posts $9 billion profit despite money laundering scandal

Commonwealth Bank has reported a fall in annual profit after a challenging year that saw them slapped with a $700 million penalty for breaching anti-money laundering laws.

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

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

The Commonwealth Bank has announced a fall in profit for 2017/18 mainly due to a $700 million penalty for money laundering. Source: AAP

CBA chief executive Matt Comyn said the bank’s business fundamentals remained strong despite the challenges.

“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 on Wednesday.

“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.