CBA posts record profit
(16 February 2012 – Australia) Commonwealth Bank of Australia (CBA) posted a record profit of A$3.62 billion for the December half and declared there would be no slashing of staff numbers.
The net profit was 19 percent higher from the year earlier.
'We have no plans to send jobs offshore. And we have no plans for major redundancy programs,'' chief executive Ian Narev said in a statement. Instead, the bank will continue to invest in technology to improve efficiency.
The profit marks the first set of accounts handed down by Narev since he was appointed to the top job in November. He replaced Ralph Norris who retired after six years in the role.
On a cash basis, first-half profit rose 7 percent to A$3.576 billion on revenue of A$23.7 billion. Analysts had expected a half-year profit of just over A$3.5 billion, up from A$3.33 billion clocked up a year earlier.
Narev, who previously headed up CBA's private and business banking arm, plans to provide investors with a strategic briefing in April.
Narev described the profit result as strong in the face of global uncertainty.
"Our strength enables us to take a long term view of the business," he said.
While demand for financial services has been subdued in Australia for some time, there are signs of renewed growth appearing in the wake of back-to-back interest rate cuts by the central bank at the end of last year - most of which were passed on by the commercial banks. Latest figures show commercial loans rose 1.4 percent in the year to December.
Mortgage growth is tracking at 5.4 percent over the same period, the slowest rate since 1977.
'We have no plans to send jobs offshore. And we have no plans for major redundancy programs,'' chief executive Ian Narev said in a statement. Instead, the bank will continue to invest in technology to improve efficiency.
The profit marks the first set of accounts handed down by Narev since he was appointed to the top job in November. He replaced Ralph Norris who retired after six years in the role.
On a cash basis, first-half profit rose 7 percent to A$3.576 billion on revenue of A$23.7 billion. Analysts had expected a half-year profit of just over A$3.5 billion, up from A$3.33 billion clocked up a year earlier.
Narev, who previously headed up CBA's private and business banking arm, plans to provide investors with a strategic briefing in April.
Narev described the profit result as strong in the face of global uncertainty.
"Our strength enables us to take a long term view of the business," he said.
While demand for financial services has been subdued in Australia for some time, there are signs of renewed growth appearing in the wake of back-to-back interest rate cuts by the central bank at the end of last year - most of which were passed on by the commercial banks. Latest figures show commercial loans rose 1.4 percent in the year to December.
Mortgage growth is tracking at 5.4 percent over the same period, the slowest rate since 1977.
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