Australia’s June 30 earnings season kicks off this week with 11 majors reporting, led by one of the biggest of all – the Commonwealth Bank – which releases its 2022-23 full-year figures on Wednesday.
Others to report include QBE and AMP with half-year figures, Suncorp with a full-year result, James Hardie with its first quarter, and full-year figures from Baby Bunting, Downer EDI, Boral, Newcrest Mining, News Corp/REA, and AGL.
The annual result and dividend from the CBA, the country’s biggest bank, will dominate investor thinking both before Wednesday’s announcement and in post-release analysis.
The CBA is expected to easily top 2022’s $8.65 billion after 2022-23 interim earnings jumped 9% to top $5.1 billion for the first time.
That puts it on track to report earnings above $9.5 billion.
The interim dividend was pushed to $2.10 a share, the same as the final paid last year.
The Commonwealth said last month it will recognise more than $200 million in provisions when it reports its full-year results, including costs associated with a Bankwest transition.
CBA last year announced that Bankwest business customers would be transitioned to Commonwealth Bank services, leaving Bankwest as a retail-only business.
The company said the $212 million of provisions in the half-year to June 30 related to costs associated with Bankwest, including changes to the group operating model, as well as the one-off levy for the compensation scheme of last resort for the financial services sector.
QBE has kept its guidance despite a higher bill from US storms and bad weather, AMP’s results will be lackluster, Downer EDI has already warned of a big loss, Baby Bunting looks like producing weak figures after downgrading its outlook in early June – the shares slumped 25% in a day.
Suncorp’s results from insurance should show improvement with an absence of one-off disasters in the final months of 2022-23, unlike a year ago when the final burst of rain and floods from La Nina hit hard.
Suncorp talk though will be dominated by the ACCC’s rejection of the sale of the company’s banking arm to ANZ Bank for $4.9 billion.
Friday sees Newcrest Mining produce its final result before it is swallowed by Newmont – the company is likely to pay a special final dividend using up its franking credits.
Boral’s results will be of minor interest – it is controlled by Kerry Stokes’ Seven Group Holdings.
AGL’s final will be of interest to see if the surge in energy prices has helped its bottom line while News Corp and REA group’s finals will reflect tough times in the media and the US and Australian property markets.
Impairment write-downs wouldn’t surprise at News Corp, which failed to sell its 80% of property listings group, Move earlier this year for $US3 billion. REA owns 20% of Move, so if there is an impairment, the impact will be felt at REA as well (it is 61% owned by News Corp).