Commbank posts strong quarter
Little more than a week after moving first to lift interest rates above the level set by the Reserve Bank, the Commonwealth Bank of Australia (CBA) has reported approximately $1.6 billion in unaudited cash for the September quarter.
However the big banking group told the Australian Securities Exchange (ASX) today that operating conditions remained challenging, with muted system credit growth reflecting sustained deleveraging and ongoing caution on the part of both consumer and business customers.
Looking at it wealth management and insurance divisions, the bank’s report to the ASX noted that both funds under administration (FUA) and funds under management performed strongly during the quarter, increasing by 4.6 per cent and 4.4 per cent respectively.
It said net flows for the quarter had been a positive $2 billion in FUA, with FirstChoice having become the largest platform in the market.
The bank said that inforce insurance premiums had grown by 2.1 per cent, excluding the sale of St Andrew’s insurance business.
Commenting on the quarterly result, CBA chief executive Ralph Norris (pictured) said that while the global economic outlook was improving, short-term risks and uncertainties remained.
“Globally, the economic recovery remains fragile, with persistent signs of weakness in the US and European economies balanced by a relatively stronger outlook in the domestic and Asian economies,” he said.
AUTHOR
Mike Taylor
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