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More good tidings for CBA shareholders

More good tidings for CBA shareholders

(14 February 2013 – Australia) Yet another record has been racked up by Commonwealth Bank of Australia (CBA), with the bank posting first half net profits, up one percent to A$3.661 billion. CBA's net profit in the six months to 31 December was up from A$3.62 billion in the same period in the previous year.

The bank's cash profit, a measure of its underlying performance, rose six percent to A$3.78 billion, from A$3.58 billion.

Analysts had expected Australia's largest home lender to post an interim cash profit of about A$3.7 billion.

CBA reported its growth in profits was mainly due to a stronger performance from its retail bank, with personal loans and credit cards driving a 10 percent rise in cash profit.

Chief Executive Ian Narev, said there had been improvement in the global economy in the six months to December, which had a positive impact on debt and share markets.

However he maintained a cautious outlook, with consumer and business confidence in Australia still subdued.

'Risk remains in the economy and, as a major financial institution, we must remain cautious,' Narev said in a statement.

'If the current stability continues, we believe it will translate into a slow but steady rebuilding of consumer and business confidence in Australia.'

CBA's net interest margin, a measure of profitability of the bank's loans, was 2.1 per cent in the six months to December.

That was up from 2.06 percent in the previous corresponding period, but down from 2.12 percent in the six months to 30 June, 2012.
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