Australian banking giant CBA posts profit in billions

Xinhua Financein SYDNEY
2017-02-15 08:55

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Australian banking giant the Commonwealth Bank of Australia (CBA) announced its half-yearly results on Wednesday, posting profits into the billions.

The bank had a net profit after tax of 4.895 billion dollars (3.75 billion U.S. dollars), with a total cash profit of 4.9 billion dollars, representing a 2 percent increase on the last period.

Australia's largest lender also had a sharp increase in their operating income, with a 6 percent spike upwards, to 13.126 billion dollars. The bank attributed their strong results to solid performance in their corporate lending and home lending divisions, along with a growth in deposits held.

Ian Narev, chief executive officer of CBA, was pleased with the results and reaffirmed his bank's commitment to its long-term strategy. "We have invested carefully but consistently over many years, leading to ongoing revenue and balance sheet growth, and continuous innovation for our customers," Narev said. "At the same time, our emphasis on productivity has ensured that expense growth is fit for the times."

But it was not all good news for the bank, with net interest margins down 4 basis points to 2.11 percent, which the bank said was due to higher funding costs over the period. The CBA will pay an interim dividend of 1.99 dollars per share to investors. (1 Australian dollar = 0.77 U.S. dollar)

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