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The biggest company on the ASX, the Commonwealth Bank (ASX:CBA) delivered stronger headline profit and dividends in the 2020 financial year, stronger than expected.

Here’s what you need to know.

Now the biggest bank in Australia, CBA, reported statutory profit growth of 12.4% to $9.6 billion, much stronger than the $9.45 billion Bell Potter expected, on the back of stronger profits from the sale of their asset management insurance and financial planning businesses.

At a closer look though, its cash net profit which was closely watched fell 11.3% to $7.3 billion, slightly off expectations, on the back of costs being higher than expected, including costs associated with its sold businesses in wealth and financial planning as well as remediation costs being above expectations too.

However a win was that its net interest margin from continuing operations was stronger than expected.

Net interest margin is the difference between what it pays out in interest versus what it receives.

It actually fell but again the margin was ahead of expectations.

CBA declared a final dividend of 98 cents per share which beat expectations of UBS, Citi and Bell Potter.

This reflects that CBA has surplus cash and is willing to pay out 50% of its second half earnings of $3.5 billion, which was again ahead of expectation.

What is also key is that CBA goes ex-dividend on the 19th of August, that means if you buy CBA’s shares before then you’ll be entitled to the upcoming dividend of 98 cents paid on the 30th of September.

CBA’s shares have gained 28% from their COVID-19 low and their shares rallied and then fell into the red on the day of the announcement, as investors digested the result.

CBA is a UBS and Citi hold, while Bell Potter has the stock as a buy.