Commonwealth Bank's full-year profit has fallen 4.7 per cent to $8.49 billion after the nation's largest lender took a $1.2 billion royal commission-related hit.

CBA booked $918 million in customer remediation expenses as well as an additional $358 million for risk and compliance programs related to failings such as those heard at the Hayne inquiry into the financial sector.

But operating income also slipped 2.0 per cent to $24.4 billion over the 12 months to June 30, with volume growth in lending and deposits more than offset by a five basis point decline in net interest margin to 2.1 per cent.

Read Next Loan impairment expenses jumped 11 per cent to $1.2 billion, the bank said on Wednesday.

Operating expenses increased by 2.5 per cent to $11.37 billion as the bank added 600 risk and compliance staff during the year as well as additional staff to work on remediation programs.

The bank's risk and compliance-related spending was 64 per cent of its total investment in FY19, up from 50 per cent last year.

CBA, which has already significantly reduced its exposure to financial advice, also announced its exit from the last of its aligned financial advice businesses.

It will stop providing licensee services through Financial Wisdom by June and help it close.

"The key takeaways from my perspective are we're making very good progress on becoming a simpler and better bank," chief executive Matt Comyn said.

The bank held its final dividend at $2.31 per share, fully franked.

Mr Comyn said the economy remained subdued but noted an improvement in the housing market, including improved clearance rates, stabilisation of prices in Sydney and Melbourne, and slightly higher housing credit growth.

"Ultimately household income growth will be key, as will the links to consumer and business sentiment in the coming years," Mr Comyn said.

CBA has also announced its entry into the buy now, pay later sector with a $US100 million investment in Swedish fintech Klarna Holding AB.

Klarna, which is valued at $US5.5 billion and has 60 million customers, will partner with CBA to compete with the likes of Afterpay and ZipCo in Australia and New Zealand.

Shares in CBA were worth $79.80 before the open of markets on Wednesday, having shed more than 3.0 per cent this week already amid US-China trade drama.

CBA's PROFIT DROPS

* Cash profit down 4.7pct to $8.49bn

* Net profit down 8.1pct to $8.57bn

*Total operating income $24.4bn, down 2.0pct

* Final dividend flat at $2.31 a share, fully franked, taking the total for the full year to $4.31