CBA set for record FY profit

Commonwealth Bank of Australia (CBA) is set to unveil a record profit this week, that may see shareholders rewarded with a special dividend, The Australian reports.

According to the newspaper, the lender is expected to post a full-year cash profit of $7.6 billion on Wednesday.

"The banks, especially CBA and Westpac, are trading at the top end of their valuation, with dividend yield being the only attraction currently, given deposit rates," Brad Potter, a fund manager at Tyndall, told The Australian.

"The areas of interest in this bank reporting season will be around any positive surprise on CBA's payout ratio and further positive news around cost-out strategies.