Commonwealth Bank of Australia (ASX: CBA) shares have been in focus this week after the banking giant released its half year results.

In case you missed it, here's a quick summary of what Australia's largest bank reported for the six months ended 31 December.

CBA reported a 3% increase in operating income to $14.1 billion thanks to volume growth in its core businesses and a small increase in the bank's net interest margin (NIM) to 2.08%. The latter reflects the effects of competitive pressure on deposits and lending pricing, which were offset by higher earnings on capital hedges and the replicating portfolio.

As for earnings, the big four bank recorded a 1% increase in pre-provision profit to $7.73 billion, a 2% rise in cash net profit after tax to $5.13 billion, and a 2.3% lift in cash earnings per share to 307 cents.

In light of this profit growth, the bank's board decided to increase its interim dividend.

The CBA dividend

CBA elected to reward its shareholders with a fully franked interim dividend of $2.25 per share. This represents a 73.3% payout ratio and is a 4.6% increase on the prior corresponding period when the bank paid out $2.15 per share.

Commenting on the dividend, CBA's CEO Matt Comyn said:

We aim to provide strength and stability through economic cycles, while maintaining the capacity to deal with macroeconomic and geopolitical uncertainties. Millions of Australians continue to benefit from our focus on strong and sustainable returns, and we have declared an interim dividend of $2.25 per share, fully franked."

The company also advised that its Dividend Reinvestment Plan (DRP) continues to be offered to shareholders and is expected to be satisfied through the on-market purchase of shares.

Speaking of on-market purchases, the big four bank demonstrated that its on-market share buybacks have supported increased dividends per share in recent years by lowering its share count (there are less shares out there taking a slice of the overall dividend pie). Quantifying the benefits, the bank said:

The lower share count from the ~$9.3 billion of buy-backs completed to date has contributed an additional ~77 cents in dividends per share since FY22.

Dates to know

CBA shares will be trading ex-dividend for this interim dividend next week on Wednesday 19 February. This means that if you want to receive the payout, you will need to be on its share register before the market close on 18 February.

After which, eligible shareholders can look forward to receiving this payout late next month on 28 March.