Wesfarmers managing director Rob Scott has dangled a capital management carrot in front of shareholders, saying the group’s $1.7 billion investment in lithium will not preclude it handing back surplus capital once COVID-19-related risks have passed.

Wesfarmers increased its interim dividend by 17 per cent after December-half net profit jumped 23 per cent to $1.39 billion, swelled by bumper profits at Bunnings, Officeworks and Kmart, which thrived during the pandemic as consumers forced to stay home stocked up on hardware and gardening supplies, home office equipment and educational needs and homewares.