Commonwealth Bank Profit Rises 3% to Record on Retail EarningsNarayanan Somasundaram
Commonwealth Bank of Australia, the nation’s largest lender, posted a 3 percent increase in full-year profit to a record for the seventh consecutive year, driven by higher earnings at its retail banking unit.
Cash profit, which excludes one-time items, rose to A$9.45 billion ($7.25 billion) from A$9.14 billion a year earlier, the Sydney-based lender said in a regulatory filing Wednesday. That compared with the A$9.5 billion mean estimate of 13 analysts surveyed by Bloomberg.
Commonwealth Bank’s record profit streak comes as some of its main rivals falter amid an increase in corporate defaults. The nation’s big four banks are also facing a regulatory clampdown on mortgages to combat runaway housing prices and bracing themselves to meet demands to boost capital and liquidity.