CBA Results in Summary
(15 February 2008 – Australia) The Commonwealth Bank of Australia has announced an eight percent lift in half-year profit to a record $2.37 billion.
Overall, the Premium Business Services unit held back overall profit, recording no increase in profits over the last year, with a steady result of $724 million. Institutional Banking, however, was strong, with a 10 percent increase in total banking income to $891 million.
The greatest increases came from the Wealth Management and International Financial Services business units. Both have increased cash profit by 27 percent, and in total make up nearly 30 percent of total profits.
Retail banking, the largest profit centre for CBA, increased 8 percent to $949 million, however the business banking unit.
CBA has increased its investments in the half-year, with an increase in investment spend of 25 percent to $438 million. Investments projects for CBA range from a variety of growth and productivity projects to risk and compliance projects.
The overall profit, however, was lower than general market expectations, primarily due to the bank's four percent increase in cash net profit to $2.39 billion falling around five percent short of market expectations.
In the market announcement, CBA said that without the extra funding costs of $70 million after tax, net profit met the expected nine percent growth expectations.
CBA identified that long term wholesale funding costs with a three year term have increased by 37 basis points in the six months to the end of 2007.
The funding profile for CBA shows that while the greatest portion of funding comes from Australia, at 42 percent, 18 percent comes from the currently volatile US market. The bank also notes, however, that they have no direct sub-prime exposure.
The greatest increases came from the Wealth Management and International Financial Services business units. Both have increased cash profit by 27 percent, and in total make up nearly 30 percent of total profits.
Retail banking, the largest profit centre for CBA, increased 8 percent to $949 million, however the business banking unit.
CBA has increased its investments in the half-year, with an increase in investment spend of 25 percent to $438 million. Investments projects for CBA range from a variety of growth and productivity projects to risk and compliance projects.
The overall profit, however, was lower than general market expectations, primarily due to the bank's four percent increase in cash net profit to $2.39 billion falling around five percent short of market expectations.
In the market announcement, CBA said that without the extra funding costs of $70 million after tax, net profit met the expected nine percent growth expectations.
CBA identified that long term wholesale funding costs with a three year term have increased by 37 basis points in the six months to the end of 2007.
The funding profile for CBA shows that while the greatest portion of funding comes from Australia, at 42 percent, 18 percent comes from the currently volatile US market. The bank also notes, however, that they have no direct sub-prime exposure.
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