CBA cash net profit up 5%
(13 August 2008 – Australia) CBA has announced that its cash net profit result for the year ending June 2008 is up 5 percent to A$4.733 billion.
The rise in profit of 5 percent has occurred in a difficult banking environment, with CBA indicating that all of its businesses performed well.
CBA commented that volatility in global markets and a slowing in economic activity placed upward pressure on funding costs and caused an increase in loan impairment expenses.
Despite this, capital position remains above the bank’s target levels, with a Tier 1 ratio of 8.17 percent.
Ralph Norris, chief executive officer, CBA, said that he felt the result was a strong performance given the current environment. He also said that good progress had been made in delivering on CBA’s five strategic priorities to achieve the bank’s goal of excellence in customer service.
Norris explained the profit level, saying that while not up to the profit growth levels achieved in previous years, the result recognises the balance achieved between the needs of customers and shareholders.
For the business units, the retail bank saw profit rise 8 percent, while the Premium Business Services unit for CBA saw just a 2 percent rise due to increased spend and higher provisions, despite a 16 percent increase in income.
Underlying profit after tax for the Wealth Management business increased by 38 percent on the prior year, to A$756 million.
The CBA board declared a fully franked final dividend of $1.53 per share. This is an increase of 3 percent on last year’s final dividend.
CBA commented that volatility in global markets and a slowing in economic activity placed upward pressure on funding costs and caused an increase in loan impairment expenses.
Despite this, capital position remains above the bank’s target levels, with a Tier 1 ratio of 8.17 percent.
Ralph Norris, chief executive officer, CBA, said that he felt the result was a strong performance given the current environment. He also said that good progress had been made in delivering on CBA’s five strategic priorities to achieve the bank’s goal of excellence in customer service.
Norris explained the profit level, saying that while not up to the profit growth levels achieved in previous years, the result recognises the balance achieved between the needs of customers and shareholders.
For the business units, the retail bank saw profit rise 8 percent, while the Premium Business Services unit for CBA saw just a 2 percent rise due to increased spend and higher provisions, despite a 16 percent increase in income.
Underlying profit after tax for the Wealth Management business increased by 38 percent on the prior year, to A$756 million.
The CBA board declared a fully franked final dividend of $1.53 per share. This is an increase of 3 percent on last year’s final dividend.
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