CBA cash profit down 16 percent
(13 February 2009 – Australia) The Commonwealth Bank of Australia (CBA) has reported a half yearly cash profit down 16 percent, but a net profit up 9 percent on the BankWest acquisition.
CBA’s Cash Profit for the last half of 2008 was $2,013 million, which represents a decrease of 16 percent on the same period in 2007 because of continued impairments.
In statutory reporting, CBA’s Net Profit After Tax (NPAT) for the half first half of the financial year was $2,573 million, which represents an increase of 9 percent on the prior comparative period.
This amount, however, was buoyed by a provisional estimate of the non-cash gain recognised on the acquisition of BankWest of $547 million.
Across the businesses, CBA’s retail bank performed well on the back of increased loans and deposits, while the business banking arm lost ground due to a number of write off’s from institutional business clients.
Cash profit for Retail Banking Services increased strongly over the half year, up by 15 percent on the prior comparative period to $1,119 million.
While Premium Business Services’ income increased 22 percent, cash profit declined to $205 million, a significant 71 percent decrease on the second half of 2007.
This was a result of impairments including a $367 million write off due to ABC Learning and other individual provisions reflecting the economic difficulty being experienced by a small number of Institutional Banking clients.
The Wealth Management business’ underlying profit decreased 16 percent on the prior comparative period to $328 million while International Financial Services’ cash profit was $278 million, a decrease of 4 percent.
CBA maintained a fully franked interim dividend of $1.13 per share, but warned that future dividends may need to be reduced.
In statutory reporting, CBA’s Net Profit After Tax (NPAT) for the half first half of the financial year was $2,573 million, which represents an increase of 9 percent on the prior comparative period.
This amount, however, was buoyed by a provisional estimate of the non-cash gain recognised on the acquisition of BankWest of $547 million.
Across the businesses, CBA’s retail bank performed well on the back of increased loans and deposits, while the business banking arm lost ground due to a number of write off’s from institutional business clients.
Cash profit for Retail Banking Services increased strongly over the half year, up by 15 percent on the prior comparative period to $1,119 million.
While Premium Business Services’ income increased 22 percent, cash profit declined to $205 million, a significant 71 percent decrease on the second half of 2007.
This was a result of impairments including a $367 million write off due to ABC Learning and other individual provisions reflecting the economic difficulty being experienced by a small number of Institutional Banking clients.
The Wealth Management business’ underlying profit decreased 16 percent on the prior comparative period to $328 million while International Financial Services’ cash profit was $278 million, a decrease of 4 percent.
CBA maintained a fully franked interim dividend of $1.13 per share, but warned that future dividends may need to be reduced.
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