Commonwealth Bank of Australia’s wealth management arm has posted a net after tax profit of $334 million, in its half-year result.
The profit growth in the wealth division includes Colonial First State, Colonial First State Global Asset Management and CommInsure and it represents a 3% rise in over the six-month period and a 10% rise year-on-year.
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Overall cash profit for the banking giant stood at $3.78 billion, up 6% for the half year, while the bank has delivered a return on equity of 18.1% despite subdued market conditions.
"We have continued to execute a strategy that is well known to the market: 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," commented chief executive Ian Narev.
He also added that the Commonwealth’s core banking modernization strategy was now largely complete and that the focus would now turn to reaping the benefits of considerable investment in technology.
Narev further said that for 2013, the macroeconomic outlook had significantly improved, especially in relation to European stability, the US recovery and China’s on-going growth.
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By GlobalDataHe said: "Of course, risks remain in the economy, and as a major financial institution we must remain cautious. The long term effects of the strategies of overseas central banks to restore stability are uncertain. But if the current stability continues, we believe it will translate into a slow but steady rebuilding of consumer and business confidence in Australia."
