Commbank report $4535 million half
The Commonwealth Bank has reported an eight per cent increase in statutory net profit after tax of $4535 million for the first half but with its wealth management business posting a 12 per cent decline on the prior comparative period.
Commonwealth Bank chief executive, Ian Narev described the banking group's overall half-year result as demonstrating the benefits of sticking to a consistent strategy and the directors declared an interim dividend of $1.98 up eight per cent on the 2014 interim dividend.
However the wealth management business reported that cash net profit after tax was down 12 per cent on the prior comparative period to $347 million with insurance income down two per cent and retail life insurance income down five per cent, albeit that whole life insurance had benefited from improved pricing.
It said that its general insurance income had decreased by 36 per cent with the result impacted by the Brisbane hail storm.
The bank's topline analysis of its wealth management division pointed to aveage funds under administration growing by 11 per cent with 85 per cent of funds outperforming their respective three year benchmarks.
Commenting on the outlook for the 2015 calendar year, Narev said the Australian economy had many of the foundations necessary to make a successful transition from its dependence on resource investment.
However he also noted that weak confidence as a significant economic threat.
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