Commbank solid in weak conditions
The Commonwealth Bank is on track for a solid profit despite reporting relatively subdued market conditions within its wealth management divisions.
In a March quarter trading update released to the Australian Securities Exchange (ASX) today, the big banking group said that unaudited cash earnings for the three months ended 31 March were approximately $1.7 billion.
Commenting on the result, Commonwealth Bank chief executive Ralph Norris (pictured) said operating conditions remained challenging.
“While the Australian economy continues to perform relatively well, consumer and business confidence remains fragile, resulting in subdued spending patterns and muted system credit growth,” he said.
Drilling down on wealth management and insurance, the trading update said relatively subdued market conditions had resulted in volume growth being broadly flat through the quarter with funds under management increasing by just 0.2 per cent.
It said subdued net flows had been offset by positive investment returns.
The update said FirstChoice had continued to perform relatively well, with net flows of $440 million for the quarter with FirstWrap also growing solidly with net flows of $317 million.
The update said insurance in-force premiums had grown 1.1 per cent driven by solid growth in retail life.
AUTHOR
Mike Taylor
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