Commonwealth Bank posts $3.66 billion profit
Despite claiming to struggle due to the high costs from global lenders and increased competition for deposits such as term deposits, the Commonwealth Bank have posted a net profit of $3.66 billion Australian dollars.
The country's largest lender has increased net profit from $3.62 billion last year to $3.66 billion for the first half of fiscal 2013, an increase of 1 percent, reports The Australian.
The increased earnings is due to strong growth in the bank's domestic and wholesale business, pushing a 5 percent increase in revenue for the period. The bank's success could also be a sign of good news for Australia.
"If the current stability continues, we believe it will translate into a slow but steady rebuilding of consumer and business confidence in Australia," said Commonwealth Bank chief executive Ian Narev.
The CBA also saw it's interim dividend raise by a fifth up to $1.64 a share. With a market value of more than $100 billion, the Commonwealth Bank is now worth more than Germany's entire banking system, according to the Datastream Global Index.
The bank is now expecting to make a full year profit of more than $7.55 billion. However CBA Chief Financial Advisor David Craig maintains that their cost of funding will remain high due to increased competition for deposits.
"It's is good for our 10 million deposit customers- this is a real benefit. But for our 1.6 million mortgage customers they have to pay for the cost of funding," said Mr Craig.