CBA signals out of cycle rise
(13 August 2010 − Australia) The Commonwealth Bank has flagged a possible out of cycle rate rise may be on the cards for the bank’s 11 million customers.
The news comes after the bank posted a record annual profit of A$6.1 billion, up A$1.8 billion on the last financial year.
The bank’s profit statement indicates that the bank’s customers were charged A$1.36 billion in home loan, consumer finance, retail deposit and distribution fees, and across the whole range of CBA’s services fees totalled A$3.4 billion.
Income from home loan interest surged to A$2.21 billion, up 41 percent and interest from credit cards and person loans also increased 19 percent to A$1.14 billion.
After expenses and tax, profit from the retail division was A$2.46 billion, up 17 per ent or A$354 million.
The bank’s chief executive officer Ralph Norris said that a likely increase in funding costs meant this division was facing a decline in its interest margin of about 0.4 percentage points over the next year.
That mightn't sound like much, but it equates to about a fifth of the bank's interest margin, Mr Norris pointed out.
At some stage the bank may well have to pass something on to customers, Mr Norris acknowledged.
The bank’s profit statement indicates that the bank’s customers were charged A$1.36 billion in home loan, consumer finance, retail deposit and distribution fees, and across the whole range of CBA’s services fees totalled A$3.4 billion.
Income from home loan interest surged to A$2.21 billion, up 41 percent and interest from credit cards and person loans also increased 19 percent to A$1.14 billion.
After expenses and tax, profit from the retail division was A$2.46 billion, up 17 per ent or A$354 million.
The bank’s chief executive officer Ralph Norris said that a likely increase in funding costs meant this division was facing a decline in its interest margin of about 0.4 percentage points over the next year.
That mightn't sound like much, but it equates to about a fifth of the bank's interest margin, Mr Norris pointed out.
At some stage the bank may well have to pass something on to customers, Mr Norris acknowledged.
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