Commbank predicts solid first half
Times may be challenging for Australia’s major financial services institutions, but the Commonwealth Bank has still forecast a net profit after tax for the first half of 2008-09 of $2 billion.
The bank said the result is more than 20 per cent ahead of market consensus but still 16 per cent lower than the prior comparative period.
According to Commonwealth chief executive officer Ralph Norris, the key components of the result were a 15 per cent increase in total operating income to around $8 billion, driven by the strong performance of the group’s banking business.
However, he said this would be partially offset by a decline in funds management income, which was likely to be down around 12 per cent on the prior comparative period.
The announcement said insurance income was anticipated to grow by around 10 per cent relative to the same period last year.
AUTHOR
Mike Taylor
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