Tougher quarter for Commonwealth Bank
The Commonwealth Bank’s wealth management divisions have registered the more subdued market conditions experienced in the March quarter, reporting both reduced funds under management (FUM) and funds under administration (FUA).
In a quarterly report released to the Australian Securities Exchange (ASX) today, the Commonwealth announced unaudited cash earnings for the period of approximately $1.5 billion.
Dealing with wealth management and insurance, the group noted the reduction in FUA and FUM and said they had been impacted by outflows from short-term wholesale cash mandates.
However, it said that its FirstChoice platform had continued to attract strong retail flows, with net inflows of just over $700 million in the quarter.
In said that in-force premiums had increased by 3.1 per cent to $1.5 billion, while general insurance operating margins had been impacted by claims associated with major weather events in Melbourne and Perth.
Commenting on the quarterly result, Commonwealth Bank chief executive Ralph Norris said that while the economic outlook had progressively improved, operating conditions remained challenging.
AUTHOR
Mike Taylor
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