CBA delivers strong result despite intense competition
(15 February 2006 – Australia) Commonwealth Bank of Australia has posted a net profit after tax of almost A$2 billion, an 18 percent rise on the previous half year.
CBA chief executive Ralph Norris said the result had been achieved in a competitive market and despite a dip in consumer credit growth.
He said solid volume growth, margin management and tight cost control had contributed to what he described as a "strong result".
CBA said home loan market share had dipped as the bank had not chosen to match the aggressive discounting taking place in the market, and that unsecured credit growth was also lower.
Premium Business Services delivered a strong result due to good capital markets performance.
"In business banking, our volume growth was ahead of the market while our funds management business attracted strong inflows," Norris said.
He said the Which new Bank program was on track to deliver financial benefits ahead of estimates and would provide a solid platform for future growth.
"If we are to meet our aspiration of being Australia’s finest financial services organisation we must engage our people more effectively and demonstrate to our customers that we can provide them with the service they deserve," he said.
He said solid volume growth, margin management and tight cost control had contributed to what he described as a "strong result".
CBA said home loan market share had dipped as the bank had not chosen to match the aggressive discounting taking place in the market, and that unsecured credit growth was also lower.
Premium Business Services delivered a strong result due to good capital markets performance.
"In business banking, our volume growth was ahead of the market while our funds management business attracted strong inflows," Norris said.
He said the Which new Bank program was on track to deliver financial benefits ahead of estimates and would provide a solid platform for future growth.
"If we are to meet our aspiration of being Australia’s finest financial services organisation we must engage our people more effectively and demonstrate to our customers that we can provide them with the service they deserve," he said.
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