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CBA reveals stellar profit

by Jessica Darnbrough8 minute read
The Adviser

A continuing focus on customer service has helped the Commonwealth Bank of Australia to record significant profit.

At the bank’s financial results briefing yesterday, CBA revealed it had achieved a cash net profit after tax of $7.8 billion for the financial year ending 30 June 2013 – 10 per cent up on the previous year.

Commenting on the result, group chief executive Ian Narev said the profit highlights the benefits of a multi-year focus on strategic priorities.

“During this financial year, the group achieved a six-year goal of becoming the market leader in customer satisfaction; completed the six-year implementation of core banking modernisation; maintained a careful balance between volume growth and margin; strengthened our balance sheet; and continued our focus on building a high integrity and collaborative culture,” he said.


In addition, CBA purchased an 80 per cent share in Australia’s largest branded brokerage, Aussie.

At the recent Aussie National Sales Conference in Sydney, Mr Narev said the purchase had been a “good buy” for the bank as it significantly enhanced CBA’s distribution.

“Mortgages are a core part of CBA’s offering,” he said. “We understand, however, that not all borrowers want to go into a bank branch to obtain a mortgage, but rather seek out the advice of a financial adviser.”

Mr Narev said he expects CBA to continue to perform strongly as the economy improves.

“Overall, we believe that the underlying conditions for our business in the 2014 financial year will be similar to those we have experienced in the recently completed year. However, we are well positioned to meet the needs of our customers should the economy rebound more quickly than anticipated.”

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