Market share increases and a rise in
cross-sell metrics helped Commonwealth Bank of Australia (CBA) post
record full year net profits of A$6.1bn ($5.46bn), up 42% from the
previous year.
CBA’s retail banking unit recorded full year
net profits of A$2.36bn, up 17% year-on-year.
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CBA CEO Ralph Norris said: “This has been
another good result. Our financial strength and the resilience of
our business franchise have again delivered excellent outcomes for
our stakeholders.”
But analysts were lukewarm about the
performance, noting that the bank’s second half retail banking
profits fell by 2% from the same period a year ago.
For the full year, CBA achieved retail mortgage
lending growth of 18%, driven by strong growth in the first home
buyer market.
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By GlobalDataWhile CBA retained its number one market share
position in deposits, margin compression in the second half
resulted in deposit income falling by 9% to A$2.79bn for the six
months to 30 June.
CBA ended the financial year with retail
mortgages and retail deposit market shares of 26.2% and 31.3%
respectively.
The bank’s cross-sell ratio grew to 2.56
products per person in the last fiscal year, up from just over two
products per person four years ago.
