Commbank reports big profit
Good performances by its insurance and funds management divisions have helped drive the Commonwealth Bank to an 18 per cent increase in net profit after tax on a cash basis to $4,604 million.
While cautioning investors about some impacts from the recent instability in global financial markets, the Commonwealth predicted further good results in the current financial year.
The bank reported strong double digit earnings growth for all three of its business segments, with its funds management business recording a 23 per cent increase in net profit after tax on the back of a 17 per cent increase in funds under administration (FUA).
It said these increases had been driven in large part by the success of the FirstChoice platform, where FUA grew by 51 per cent to $40 billion.
In its insurance division, the Commonwealth reported an 18 per cent increase in net profit after tax to $253 million.
The Commonwealth’s chief executive, Ralph Norris, said the insurance division’s performance had been driven by a combination of solid in-force premium growth in Australia and New Zealand and a positive claims experience.
As well, he said there had been a 26 per cent improvement in planned margins.
AUTHOR
Mike Taylor
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