Commonwealth Bank of Australia (CBA) has achieved an increase in net profit after tax (NPAT) for the half year ended 31 December 2012.
Statutory NPAT rose one per cent to $3,661 million over the six-month period whilst cash NPAT increased six per cent to $3,780 million for the half year, according to a statement to the Australian Securities Exchange (ASX).
CBA’s wealth management unit, which includes Colonial First State (CFS), Colonial First State Global Asset Management (CFSGAM) and CommInsure, achieved an NPAT of $334 million, representing a three per cent increase over the six-month period and a 10 per cent increase year-on-year.
“This is a strong result, which continues to demonstrate the benefits of the group’s consistent long-term strategy,” CBA chief executive Ian Narev said.
“As a result, despite the subdued market conditions, the group has delivered a cash return on equity (ROE) of 18.1 per cent. We have done so whilst significantly strengthening our capital base. Our strong organic capital growth means that, relative to both international and domestic peers, we are very well capitalised,” he said.
CBA’s core banking modernisation aspect of the firm’s strategy has now been completed, so focus turns to other opportunities for technology investment.
“Individual products will be on a much smaller scale, but are intended to deliver better outcomes for customers, reinforce our commitment to productivity, and maintain our industry leadership in technology,” Mr Narev said.
He explained that the outlook for the 2013 calendar year is positive, following improvements in the global macroeconomic environment which, in turn, has created more stability in the global equity and debt markets.
“If the current stability continues, we believe it will translate into a slow but steady rebuilding of consumer and business confidence in Australia,” Mr Narev said. “We will continue to focus on the long-term strategy goal that has underpinned this result, and which we believe positions the group very well into the future.”
