Commonwealth Bank of Australia reports 13% jump in third-quarter profits
May 11, 2011‐ Sydney, Australia
The Commonwealth Bank of Australia (ASX:CBA) has reported profit numbers - a 13 per cent jump in third-quarter cash profit, coming in at A$1.7 billion, up from the A$1.5 billion reported during the same period last year.
With this the bank’s profits for 2011 so far has jumped to A$5 billion after the bank has reported a A$3.3 billion at the end of first six months operations earlier in December 2010. With this, the bank appears to be comfortable in moving over the A$6.1 billion mark in profits that was reported last year. The numbers are in line with market expectations.
The bank however said that consumer and business confidence is remaining fragile while credit and lending growth is continuing to be subdued. Accepting the challenging operating circumstances, the Bank CEO Ralph Norris said that the bank performed well and that the key trends remaining broadly consistent through the first half of the year. He expects a ‘gradual improvement in operating conditions through calendar 2011, as the economic recovery strengthens and system credit growth rebounds’.
The net interest margins have seen improvement. Loan demand has come down by 5%. The bank is infusing A$1 billion in technology spending in a bid to attract more customers and introduce products more quicker in order to capture market share.
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