CBA’s net profit jumps 54 percent
(11 February 2010 – Australia) Commonwealth Bank of Australia has reported a cash net profit of A$2.94 billion for the half year ended December 2009, an increase on the bank’s forecasted expectation of A$2.9 billion.
The bank’s cash net profit jumped 54 percent from A$1.9 billion to A$2.94 billion for the six months ended December 31st 2009, due mainly to a strong performance in its business banking and wealth management divisions.
The bank's statutory net profit rose 13 percent to A$2.91 billion.
The pro-forma result, which treats the acquisition of BankWest in late 2008 as part of the bank in the previous first half period, indicates that the bank’s Institutional Banking and Markets business grew from a loss of A$168 million in December 2008, to a profit of A$545 million in December 2009.
The bank’s Retail Banking division experienced an 11 percent growth, increasing from A$1.1 billion to A$1.2 billion, while its Wealth Management unit rose to A$379 million from A$178 million.
CBA’s chief executive, Ralph Norris, said that the result demonstrates the resilience of the bank’s business model and the underlying strength of each of its businesses; as a result CBA is entering 2010 in a strong position.
Mr Norris also said the economic outlook had improved and Australia appeared to be on the road to a sustainable recovery.
That is likely to bring with it a gradual improvement in the demand for credit in the 2010 calendar year accompanied by continued upward pressure on funding costs, Mr Norris added.
The bank's statutory net profit rose 13 percent to A$2.91 billion.
The pro-forma result, which treats the acquisition of BankWest in late 2008 as part of the bank in the previous first half period, indicates that the bank’s Institutional Banking and Markets business grew from a loss of A$168 million in December 2008, to a profit of A$545 million in December 2009.
The bank’s Retail Banking division experienced an 11 percent growth, increasing from A$1.1 billion to A$1.2 billion, while its Wealth Management unit rose to A$379 million from A$178 million.
CBA’s chief executive, Ralph Norris, said that the result demonstrates the resilience of the bank’s business model and the underlying strength of each of its businesses; as a result CBA is entering 2010 in a strong position.
Mr Norris also said the economic outlook had improved and Australia appeared to be on the road to a sustainable recovery.
That is likely to bring with it a gradual improvement in the demand for credit in the 2010 calendar year accompanied by continued upward pressure on funding costs, Mr Norris added.
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