Commonwealth Banks upgrades prove fruitful in FY08/09 Results

Friday August 14, 2009

Commonwealth Bank has reported solid banking industry growth with customer numbers rising across most of its main banking channels. Commonwealth Bank chief executive Ralph Norris stated that the banks business had indeed improved as more customers opt for larger and renown banking institutions.

The banks 2008/09 financial results were released and showed:

• 30 per cent increase in personal account openings
• 21 per cent growth in its home loan balances (against system growth of seven per cent)
• 16 per cent growth in retail deposits

However, it was not all good news as the report also showed annual cash profit of $4.41 billion, with a 7 per cent decline in cash earnings. It is expected that the Commonwealth Bank will cut its dividend payments by 25 per cent this year.

The success of these customers number has been attributed to a stronger focus on customer relations and major upgrades to the Commonwealth Banks highly popular Netbank system.

This news comes at the same time as Mr Norris confirming that the bank will act outside of the Reserve Bank of Australia's rate movement if the bank believes it is necessary.

''I don't think there's any doubt that we will continue to reprice where necessary,'' Mr Norris said. ''We've got to act on a commercial basis and certainly what is right for the business and if we need to reprice we will reprice.''

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