CBA post positive 1H results
(10 February 2016 – Australia) Commonwealth Bank of Australia (CBA) has reported that its first half profits rose by 4 percent to A$4.8 billion. The bank said its retail banking unit and low numbers of bad loans were key contributors to the positive outcome.
Speaking about the results, CBA Chief executive officer Mr Ian Narev said the results reflected the slow “transition” of the Australian economy as it shifts away from mining investment.
"These results show that through the latter part of 2015, the Australian economy continued its steady transition from a resource-dependent economy to a more diversified one," he said in a statement.
"Sound monetary policy and a lower Australian dollar are stimulating construction and starting to benefit export-sensitive industries such as tourism, education and agriculture," Narev said.
"As a result, the economy overall is starting to generate a broader base of jobs."
CBA’s business bank increased profits to $A803 million, equating to a 5 percent jump from the previous corresponding period, while earnings in wealth management were up 7 percent, to $362 million.
The bank’s business lending growth also picked up, however remains at relatively modest levels and has become increasingly competitive as the banks have tried to offset the lower growth in home lending.
CBA will leave first half dividends at $1.98 a share, it said.
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