Commonwealth Bank announces first half profit
The Commonwealth Bank of Australia Ltd (CBA) has reported a healthy first half profit of eight percent despite losing millions in loan fees due to the global credit crunch that forced all Australian banks to lift their interest rates.
To magnify the banks need to hike interest rates, CBA net profit for the six months ended December 31 was $2.371 billion, which is a slight gain of only $180 billion for the corresponding period last year.
The bank said that, "The increased volatility in global financial markets which characterised the first half of the group's financial year is expected to continue until at least the end of the current calendar year as the full impacts of the sub-prime crisis flow through the market,"
"For the Australian economy this is likely to mean that wholesale funding costs will remain above levels experienced in the 2007 financial year and inflation will continue to be a concern.
"This is expected to lead to further upward pressure on interest rates."
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