CBA posts solid result citing exit from wealth
The Commonwealth Bank has attributed a durable full year financial result, in part to, substantially divesting its wealth management businesses.
The bank today announced a 12.4% increase in statutory net profit after tax to $9,643 million which it said included gains realised on the sale of businesses, while cash net profit after tax was down 11.3% to $7,296 million.
Commenting on the result, CBA chief executive, Matt Comyn said the strength of the core businesses combined with strong operational performance had delivered good outcomes for customers and shareholders despite the challenges presented by lower interest rates and COVID-19.
“We have substantially divested our wealth management businesses in line with our simpler, better bank strategy,” he said. “This has allowed us to focus on delivering performance in our banking businesses.”
Looking to the future, Comyn pointed to the challenges tied up in the COVID-19 pandemic but said that the bank was prepared for a range of economic scenarios and had provisioned accordingly.
“We anticipate that lower credit growth and low interest rates will continue to put pressure on our revenue, requiring a focus on performance, efficiency and capital allocation,” he said.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
