CFSGAM exit helps CBA bottom line
The $1.688 million sale of CFS Global Asset Management has put a gloss on the Commonwealth Bank’s first half net profit after tax which was up 34% to $6.16 billion.
Announcing the result to the Australian Securities Exchange (ASX) today CBA chief executive, Matt Comyn referenced the company’s strong focus on strong execution in the bank’s core franchise.
The result saw the board announce an unchanged interim dividend of $2 per share.
Looking over the horizon, Comyn said the Australian economy was underpinned by good long-term fundamentals.
However, he said uncertainties remained about the global economic outlook and that the company was mindful of the impacts of drought and bushfires.
CBA’s past problems with respect to the Prudential Inquiry were mentioned in the ASX announcement with the bank confirming it had submitted 107 of 173 milestones.
On the wealth management front, cash net profit after tax reflected the bank’s move out of many of its financial planning exposures with cash net profit after tax down 50% on the prior comparative period to $133 million.
Recommended for you
As private markets garner mainstream attention, a panel of experts believe access to the asset class through managed accounts will become more widely available, providing opportunities for advisers to diversify portfolios.
While retail investors turned to blue-chip stocks last month, according to AUSIEX trading data, September saw advised investors switch into ETFs.
With the intergenerational wealth transfer underway in Australia, wealth managers are focusing on how they can attract the next generation of advisers to service these younger clients.
ASIC wants to expand proceedings against Equity Trustees to seek compensation for members following Macquarie’s agreement to pay $321 million over Shield failings.
