CommBank records first half FY2013 net profit of $3.66 billion

CEO highlights a key initiative within its strategy – its Core Banking Modernisation

The Commonwealth Bank of Australia (CommBank) has announced a statutory net profit after tax (NPAT) of $3.66 billion for the half year ending December 31, 2012, a one per cent increase from the same time last year.

Cash NPAT for period was $3.78 billion – an increase of six per cent.

The bank declared its Cash Return on Equity (ROE) for the half-year was 18.1 per cent, and an interim dividend of $1.64 per share - an increase of 20 per cent on the 2011 interim dividend.

CommBank Group CEO, Ian Narev, said it was a strong result which demonstrates the bank's long-term strategy.

“We have continued to execute a strategy that is a focus on the customer, disciplined management of volumes and margin, a focus on productivity, and a willingness to invest in long-term growth, particularly through technology,” he said.

Narev said reaction to the recently launched MyWealth program was “very encouraging” with 30,000 visitors, staying for an average of 10 minutes, to the site.

He also mentioned the company will install video-conferencing capabilities across all of its branches by the end of June this year.

“The ability to deliver to our customers specialist conversations and knowledge in areas like personal lending, wealth management and business banking will be in the branches,” he said.

Narev highlighted a key initiative within its strategy – its Core Banking Modernisation – which is substantially complete.

“Our focus in that area now turns to continuing to reap the considerable benefits of that investment, and looking for other opportunities for technology investment.”

He said individual projects are intended to deliver better outcomes for customers, reinforce its commitment to productivity, and maintain industry leadership in technology.

Looking ahead for the remainder of 2013, Narev said the company will continue to focus on the long-term strategic goals that have underpinned its current result, and believes it positions the group very well into the future.

“If the current stability continues, we believe it will translate into a slow but steady rebuilding of consumer and business confidence in Australia. And that is our base case for the 2013 calendar year,” Narev added.

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