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Australia’s largest bank, Commonwealth Bank (ASX:CBA) reported its FY22 results.

Statutory NPAT rose 9% to $9.673 billion and cash NPAT rose 11% to $9.595 billion, slightly greater than Citi’s expectation. NPAT was supported by operational performance and volume growth in core businesses, as well as the reduction of COVID-19 related provisions.

CBA’s net interest margin fell 18 basis points to 1.9%, due to an increase in low yielding liquid assets and lower home loan margins.

They declared a full year fully franked dividend up 10% to $3.85 per share.

The bank expects consumer demand to moderate as cost of living pressures increase and they remain optimistic amid the current economic conditions.

CBA’s share price saw a sharp drop at the open this morning, following its earnings release, however its price has been moving higher over the course of the day, regaining earlier losses.

Brokers aren’t as optimistic on CBA’s outlook. Citi have a Sell rating, and Macquarie have an Underperform rating on CBA.