Funds management adds to CBA profits

funds management insurance commonwealth bank colonial first state chief executive

10 August 2005
| By Zoe Fielding |

Commonwealth Bank has again declared record dividends and posted strong full year results across all businesses, including funds management which saw a 28 per cent increase in net profit after tax on the back of just 12 per cent growth in funds under administration during the year.

In dollar terms, funds under management in the bank’s funds management operations grew to $123.1 billion while contributions to profit increased to $351 million from $274 million in the previous financial year.

Chief executive David Murray said profit growth in the Colonial First State dominated funds management businesses had been supported by productivity improvements.

The company reported the ratio of funds management expense to average funds under administration had fallen from 0.76 per cent at June 2004, to 0.70 per cent at the end of the 2005 financial year - an improvement of 7.9 per cent.

Murray also attributed the result to strong fund inflows, revenue growth, attractive customer offerings and flat expenses.

The company’s insurance business also contributed more this year, with profits expanding by 21 per cent from the previous reporting year to $156 million. Productivity in the business also improved by 1.7 per cent.

Overall, the bank reported a 55 per cent increase in after-tax profits from the previous year to $3,991 million, or a 31 per cent increase to $3,538 million if value uplift and goodwill amortisation were excluded, as they will be starting from next year when new accounting standards are introduced.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 4 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 2 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 5 hours ago