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CBA Profit

13/08/1998

The Commonwealth Bank of Australia has announced a profit of $1.09 billion, a 1% rise on last years figure.

Twelve months ago David Murray probably would have thought this to be a disappointing figure had somebody suggested it to him, but given the events of the past twelve months he is probably not too displeased.

It is well documented that lending margins have been tightening for the last few years, with the last twelve months being no exception. But given that the CBA grew its lending book by around 10%, they are probably not too displeased with this side of operations.

Asia has also had an effect on the domestic banking sector with the CBA having a $5.9 billion exposure, down from $6.7 billion. Bad debts for this exposure jumped from $98 million to $233 million.

On the plus side, fee income was up and the financial markets traded well over the twelve months.

The markets responded by selling the CBA shares down, but by the end of the day they had recovered to post a gain for the day.

In all, solid figures without being anything to get too excited about.


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