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Commonwealth Bank profit tops $6 billion – up 42 percent

The Commonwealth Bank of Australia’s (CBA) cash net profit after tax has increased by 42 percent to $6,101 million for the financial year ended 30 June 2010.

Commonwealth BankCBA’s statutory net profit after tax for the same period was $5,664 million, 20 percent higher than the previous year. With a $1.70 per share final dividend declared an increase of 48 percent over the previous year, with the total dividend paid out by CBA to shareholders over the last financial year reaching $2.90.

Commonwealth Bank of Australia Group Chief Executive Officer, Ralph Norris said the result was a pleasing one, which came about through the bank’s focus on their five strategic priorities over the past 4 years.

“This has been another good result. Our financial strength and the resilience of our business franchise have again delivered excellent outcomes for our stakeholders.”

“We have also balanced the needs of our customers and our shareholders. On the one hand, we have provided significant support for our customers. In a year where global financial markets (particularly in the second half) were volatile and unpredictable we wrote over $90 billion in new loans and advances to retail and small business customers.”

The Commonwealth Bank’s $6.1 billion profit brings into question the banks claims about wholesale funding pressures and their current position on setting interest rates. Yesterday National Australia Bank posted a $1.1 billion quarterly earnings result for the June quarter. When Dynamic Business asked for comment from CBA account holders the $6.1 billion result was seen as exorbitant.

“It seems unfair that the Commonwealth Bank is making such huge profits when they are charging my account such large fees and my savings are dwindling” said Ms Wright when commenting on CBA’s result.

Yesterday Mr David Turner, Chairman of Commonwealth Bank of Australia announced the appointment of Mr Brian Long as an independent Non-Executive Director of the Bank. The appointment will become effective from 1 September 2010 and Mr Brian Long comes on board at a time with considerable upside for the bank.

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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