16 August 2012 7:16am

Commonwealth Bank lifted its dividend payout ratio to 75 per cent in the 2012 full year and resolved that it would pay more of the dividend following the half year profit in future.

The bank may also buy back shares in future to offset the effect of its dividend reinvestment program (though it will not do so for the final dividend payable in October).

David Craig, the bank's chief financial officer, told an investor briefing yesterday that "our shareholders say, not surprisingly, they like a strong, stable dividend. They want to see we’re paying out franking credits as much as...