Commonwealth Bank of Australia announces record profit

The Commonwealth Bank of Australia (CBA) will tap shareholders for a 5 billion dollar lift in capital reserves after unveiling a record 9.15 billion Australian dollar ( 6.67 billion U.S. dollar) cash profit on Wednesday.

Australian Securities Exchange (ASX) listed companies are currently reporting their financial year-end profits to the local market.

CBA's profit result is up 5 percent from last year's 8.68 billion Australian dollar (6.33 billion U.S. dollar) result, with local media reporting on Wednesday it fell largely in line with expectations.

The bank lifted its final dividend 4 cents to 2.22 Australian dollars (1.61 U.S. dollars) per share, fully franked, slightly below expectations of 2.25 Australian dollars (1.64 U.S. dollars).

Meanwhile, the bank announced it will raise 5 billion Australian dollars through a renounceable entitlement offer aimed at lifting its capital reserves ahead of a move by Australia's banking regulator to requiring banks' reserves to be in line with the top quartile of their global peers.

Shareholders will be allowed to buy one CBA share for every 23 they own at 71.50 Australian dollars per share (52.01 U.S. dollars) , which is a 10.5 percent discount on the 82.12 Australian dollars (59.72 U.S. dollars) price the stock was last traded at.

CBA shares are in a trading halt while the bank carries out the institutional component of its capital raising.