For the month, the benchmark S&P/ASX200 fell 0.1 per cent to 5625.9. Over the final week it slipped 0.4 per cent and on Friday it was flat.

The broader All Ordinaries was flat in August, down 0.3 per cent for the week and up 0.1 per cent on Friday.

During the final week of the month, the S&P 500 above 2000 for the first time on the back of increase confidence in the recovery of the world's largest economy.

While noting the health of the US economy, during a meeting of central bankers in Jackson Hole, US Federal Reserve Janet Yellen avoided any comments around the time when the US central bank will begin to raise rates.

Coming into August, Australian investors were hoping for strong revenue growth to help justify valuations after a relatively strong run.

Headline profits have been reasonably good, but much of the extra money has largely come from cost-saving, rather than improved sales.

"Generally, there wasn't spectacular growth, obviously there were a few stars, in top line sales, unless there was benefit from acquisitions," Patersons Securities strategist Tony Farnham said.

"The top down angle is showing growth at below trend, the consumer is still a little bit cautious on spending, although that seems to be picking up – that might be to the benefit of the results of the current half-year and full-year, but that's water a little further upstream that we haven't seen yet."

Iron ore reached a fresh two-year low in the final week of August. The metal has fallen 8.7 per cent to $US87.30 a tonne over the month.

Concerns about the lack of demand for steel from China's property sector have once again bubbled to the surface. However, unlike in June, when iron ore was at similar levels, the Chinese government is not expected to inject any sort of stimulus into the economy.

BHP reported $US13.4 billion full-year underlying profit while also announcing the $15 billion demerger. Rio Tinto impressed the market with a $US5.1 billion underlying half-year profit. Australian iron ore miner Fortescue reported a massive 56 per cent jump in profit to $US2.7 billion.

But BHP shares fell 5.2 per cent in August to $36.67, while Rio dropped 5.7 per cent to $62.63.

Commonwealth Bank of Australia was the only bank of the big four to report full-year earnings, hitting a record profit of $8.6 billion. Australia and New Zealand Bank and National Australia Bank issued quarterly updates. ANZ hit profit of $5.2 billion in the nine months to June and NAB lifted third quarter profit to $1.7 billion.

The results, while solid, largely disappointed investors. There are concerns about weak credit growth and the impacts of the Murray Financial Services Inquiry moving forward.

CBA shares finished 2.9 per cent lower for the month, but the stock did trade ex-dividend. ANZ fell 1.6 per cent to $33.43 in August, while NAB dipped 0.3 per cent to $35.20.

Returning cash to shareholders was another theme that stood out during reporting season.

"The traditional dividend players, continued to please the market. People say the buy in on stocks for income is getting a bit tired, and it is, but it's still there at this stage," Mr Farnham said.

Telstra rewarded its 1.4 million shareholders by announcing not only an increased dividend, but also a $1 billion share buyback. The announcement came as the telco reported a $14.3 per cent increase in full-year profit to $4.3 billion. Telstra shares hit a 12-year high during August, finishing the month up 1.3 per cent at $5.56.

Wesfarmers was another major companies to open the cookie jar for investors, announcing the return of $1.1 billion to shareholders. The funds will come from the sale of its insurance business earlier in the year. Shares ended August down 1.4 per cent at $43.31.

While there were bad results, nothing really surprised on the negative side, Mr Farnham said.

"All the strategists out there haven't changed their numbers that much for this year because of reporting season. They might have nudged them a little bit lower, but there was some really optimistic calls out there for where the market was going."

Among the more notable losses were the country's two biggest airlines.

Qantas reported a full-year net loss of $2.8 billion, and an underlying loss of $646 million. The net loss included the non-cash $2.6 billion write-down of the value of its international fleet.

The flying kangaroo's outlook impressed investors, with shares surging 10.1 per cent for August to $1.47.

Rival Virgin Australia also reported a net loss of $355 million and an underlying loss of $211 million.

Virgin shares finished the month 2.5 per cent higher at 41.5¢.