Wealth becomes CBA’s star

The Commonwealth Bank’s (CBA’s) wealth management arm has achieved the largest growth of all divisions, as the bank announces a record $4.2 billion half-year profit. 

The wealth management division made a $395 million profit in the half year to 31 December 2013, up 19 per cent from the previous corresponding period, achieving more growth than any other single division, according to the bank’s half-yearly results released on the Australian Securities Exchange this morning. 

The bank stated this growth reflected continued growth in global investment markets and strong investment performance. Group chief executive officer Ian Narev said all business divisions had performed well. 

“We have strengthened our focus on enhancing the financial well-being of our customers and have used our leading technology platform to deliver innovative products and services to business and personal customers,” Narev said. 

He added the bank remained cautiously optimistic about the economic environment for this year. 

“We have seen, in recent weeks, that there is still volatility in global markets,” Narev said. 

“The risks presented by that volatility continue to suppress business confidence. As a result, there is little real evidence, so far, of a meaningful increase in investment in the rest of the non-resource sector of the Australian economy, other than in housing.” 

CBA also highlighted a 22 per cent growth in average funds under administration, with almost 90 per cent of funds outperforming the benchmark.