In disappointing news for shareholders, the CBA plans to slash its dividend by 25% to $1.15 a share, in an effort to protect itself from the impact of the weakened economy, rising unemployment and a slowdown in credit demand.
In a trading update released today, the Commonwealth Bank announced cash earnings for the March quarter were $1.15 billion, creating a cash return on equity of more than 15%.
Optimistically, Commbank Chief Executive Ralph Norris said that while the economic conditions remained challenging, the global financial markets were no longer in freefall.
The dividend cut follows similar cuts made recently by the ANZ, NAB and Westpac.
ASX Code: CBA
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