Commonwealth Bank of Australia Cautions on Economy Even as Profit Climbs

  • Matt Comyn says there are signs of downside risks building
  • Bank will do A$1 billion stock buyback in coming months

A Commonwealth Bank of Australia branch in Sydney, Australia.

Photographer: Brent Lewin/Bloomberg
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Commonwealth Bank of Australia shares advanced after delivering a record profit together with a buyback and an increased dividend, offsetting caution from Chief Executive Officer Matt Comyn on the fragile economic outlook.

Cash profit climbed to A$10.2 billion ($6.7 billion) and the country’s biggest lender said it will begin a A$1 billion stock buyback, while paying a final dividend of A$2.40 per share. Meantime, Comyn handed investors a dose of caution by setting aside more cash for troubles brewing in the economy.