CBA flags internal restructuring as earnings dip
(Australia) Commonwealth Bank of Australia has admitted it needs to undergo "major transformational change" if it is to become "more competitive" and the bank said it will unveil a strategy for achieving this in the next six weeks.
The statement comes in the CBA’s full year results announcement which shows second half earnings dipped 3.7 percent from A$1.398 billion compared with A$1.451 billion last year.
Net profit for the year to June 2003 dropped by 24 percent to A$2.02 billion compared with A$2.66 billion the last time around.
CBA’s results were impacted by a weaker performance in its wealth management business while its funds management business was undermined by weaker equity markets.
In a statement, CBA chief executive David Murray said the bank’s "strong banking performance was primarily driven by the Australian and New Zealand retail banking operations".
The bank said the result was affected by first time expenses caused by strategic initiatives as well as costs associated with its employee share acquisition plan.
Despite the lacklustre wealth management result, Murray said the bank’s merger with Colonial had added "considerable value".
"The integration of the banking businesses and the value created through wealth management reflects the global experience of wealth management being a complementary business for banks," the bank said.
The bank declared a fully franked dividend payout of 85 cents per share for the first six months of 2003, which brought the dividend per share for the full year to 154 cents.
Net profit for the year to June 2003 dropped by 24 percent to A$2.02 billion compared with A$2.66 billion the last time around.
CBA’s results were impacted by a weaker performance in its wealth management business while its funds management business was undermined by weaker equity markets.
In a statement, CBA chief executive David Murray said the bank’s "strong banking performance was primarily driven by the Australian and New Zealand retail banking operations".
The bank said the result was affected by first time expenses caused by strategic initiatives as well as costs associated with its employee share acquisition plan.
Despite the lacklustre wealth management result, Murray said the bank’s merger with Colonial had added "considerable value".
"The integration of the banking businesses and the value created through wealth management reflects the global experience of wealth management being a complementary business for banks," the bank said.
The bank declared a fully franked dividend payout of 85 cents per share for the first six months of 2003, which brought the dividend per share for the full year to 154 cents.
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