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
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
The FAAA has suggested looking offshore for overseas financial advisers to ease the adviser shortage, but are employers willing to take on the burden of workplace visas?
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.