Market volatility dogs CommBank's wealth management
Market volatility is continuing to challenge the wealth divisions within the Commonwealth Bank, according to the big banking group's latest quarterly trading update filed on the Australian Securities Exchange today.
Commenting on the September quarter data, the bank said market conditions had "continued to create headwinds for Wealth Management".
It said Funds Under Management and Funds Under Administration had declined by 2.7 per cent and 3.7 per cent respectively during the quarter due to negative investment returns, partially offset by foreign exchange gains as the Australian dollar pulled back from some of its recent highs.
However, the banking group said FirstChoice and Custom Solutions had experienced positive net inflows of $408 million and $321 million respectively during the quarter.
Looking at insurance, the quarterly update said in-force premiums grew by 2.3 per cent in the quarter, with good growth in retail direct life and general insurance.
While the overall quarterly update revealed unaudited cash earnings for the quarter were approximately $1.75 billion, chief executive, Ralph Norris said operating conditions remained challenging amid the continuing global economic uncertainty.
He said that given the continuing volatility and economic uncertainty, the Commonwealth Bank would be maintaining its conservative business settings.
AUTHOR
Mike Taylor
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