Commonwealth Bank has showered its shareholders with a record $7.7 billion in dividends, paying out almost 80¢ in every dollar of profit it made in the last financial year.

Investors said the higher returns – a $4.65 dividend per share – represented the strength of the balance sheet. The payments and an extension of its on-market share buyback came as the country’s largest bank reported a $9.8 billion cash profit in the 12 months to June 30, down 2 per cent on the previous year but ahead of market expectations.