Reporting Season Round Up: CBA flags monster dividend after big profit jump
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Here it is – your daily round up of ASX companies’ financial results. Reporting results to market this morning were Commonwealth Bank (ASX:CBA), Arena REIT (ASX:ARF), Secos Group (ASX:SES) and Insurance Australia (ASX:IAG).
Australia’s largest bank is always one of the closest watched every reporting season.
Shareholders hanging for dividends were not left disappointed with a final payout of $2 per share up 104% from the year before. The bank also announced a $6 billion share buyback and that it would distribute $2.1 billion in franking credits.
The bank also impressed with its bottom line, making an $8.843 billion statutory net profit after tax, up nearly 20% from FY20.
CEO Matt Comyn said while there would be ongoing economic impacts and earnings pressure from lower interest rates, Australia’s strong, stable and secure financial system and CBA’s strong capitalisation would hold it in good stead.
COVID-19 has had a mixed impact on ASX REITs dependant on their sector but Arena has put in one of the better performances.
Arena is an ASX REIT specialising in “social infrastructure” including childcare, healthcare, education and government tenanted facilities.
Arena increased its portfolio by 14% to $1..15 billion through acquisitions and capital expenditure yet announced a statutory net profit of $165.4 million, up 116% on the prior year.
The company is paying out 14.8 cents per share, up 6% on the prior year and is tipping 15.8 cents in FY22.
“Arena remains well positioned to navigate the ongoing and emerging challenges arising from COVID-19, including potential changes in economic conditions,” said CEO Rob de Vos.
“We also remain well positioned to consider new opportunities that are consistent with strategy and deliver on Arena’s investment objective.”
The bioplastics developer expects a net profit of $2.6 million which was a stark contrast to the $1.2 million loss it made in FY20.
The result came off the back of a 43% jump in revenue from $21.03 million to $30.08 million.
Secos said the results came despite trading disruptions due to COVID-19 and expects even if these continue it can navigate the challenges. It expects the current capacity expansion rollout plan to be complete by the end of 2021.
This company is the parent corporation of several insurance brands in Australia, New Zealand and Asia led by the NRMA.
It made a Gross Written Premium (GWP) of $12.6 billion, up 3.8% on the year before. GWP is the total premium (direct and assumed) written by an insurer before deductions for reinsurance and ceding commissions.
IAG’s insurance profit rose by nearly 36% from $741 million to $1.007 billion although its underlying margin fell from 16% to 14.7%.
The company ultimately made a net loss of $427 million thanks to one off corporate expenses associated with business interruption and payroll remediation.
Nevertheless it will still paying a dividend of 13 cents per share and reintroduced guidance for FY22 – in an insurance margin between 13.5% and 15.5%.