Wednesday, February 15, 2012

Commonwealth Bank delivers $3.6 billion profit but repeats that funding costs have increased. Says there are no "major" plans for job cuts or offshoring

Commonwealth Bank has defied analysts' estimates and recorded a net profit of $3.62 billion, up 19 per cent on the same period last year.

The bank's preferred measure, cash profit, came in at $3.58 billion for the six months to the end of December.

Speaking to analysis this morning, chief executive Ian Narev said the bank was committed to its 52,000 staff and had no plans for major job cuts or offhshoring.

Here's my analysis from The World Today.

The bank says it is becoming increasingly hard to make money from home loans.

In his first results announcement, Mr Narev said it was becoming harder for the bank to make money from home loans but he had seen no sign of customers leaving after the bank's recent increase in its variable mortgage rates.

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