Commonwealth Bank posts profit bonanza

Commonwealth Bank chief David Murray said the “Which New Bank” restructuring program was successful “beyond our expectations”, and assisted the bank grow revenues and contain costs in advance of budget. The bank reported a 50 per cent increase in net profit to $1.86 billion in the December 2004 half from December 2003, a result inflated by an increase in the value of its life insurance business. The bank recorded increases in market share in home loans and credit cards, and maintained its interest margin over the last six months. CBA said it would continue to seek “sustainable pricing” rather than buy market share with unsustainable rates.