The wealth management unit of Commonwealth Bank of Australia (CBA) posted a cash net profit after tax of A$263m for the half year ended 31 December 2018.
The figure was a slump of 27% compared to A$359m a year ago.
Go deeper with GlobalData
Last year, CBA announced plans to demerge its wealth management and mortgage broking business.
The banking group also divested CommInsure Life and Colonial First State Global Asset Management.
Moreover, it consolidated Commonwealth Financial Planning and General Insurance, transferring it out of the wealth unit into the retail banking services unit.
On a year-on-year basis, cash net profit after tax at the wealth unit from continuing operations soared 17% to A$136m while in case of discontinued operations it plummeted 48% to A$127m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOperating expenses at the wealth division dipped 3% to A$250m from A$257m. The fall in expenses was said to be due to reduced staff costs and the “ongoing realisation of productivity benefits”.
Risk weighted assets at the unit were A$2.1bn, versus A$627m last year.
Average funds under administration was A$147bn, up 6% from the previous year.
The business and private banking segment of CBA reported cash net profit after tax of A$1.41bn for the half year ended 31 December 2018.
This marks a fall of 3% from A$1.45bn in the previous year.
Net interest income at the division stood at A$2.59bn, a rise of 1% from the previous year.
Operating expenses at the business and private banking arm increased 3% year-on-year to A$1.14bn due to higher staff expenses.
Overall, the banking group posted cash net profit after tax from continuing operations of A$4.67bn for the six months to end-December.
This was an increase of 2% from the previous year. Including discontinued operations, cash net profit after tax dipped 2%.
On a statutory basis, net profit after tax including discontinued operations fell 6% year-on-year and dropped 4% when factoring in only continued operations.
The performance was hit by expenses associated with misconduct issues.
