The Commonwealth Bank of Australia has announced an 8 per cent increase in net profit after tax (NPAT) with a 9 per cent jump in advice earnings following the bedding down of the Count Financial acquisition.
Statutory NPAT was up from $7.090 billion to $7.677 billion, and wealth management increased 9 per cent from $629 million to $687 million, over the 12 months to 30 June 2013.
The bank’s advice business saw a 23 per cent increase in funds under administration to $240 billion. Insurance in-force premiums were up 10 per cent to $2 billion.
Retail life insurance income increased 12 per cent due to strong growth in retail bank network sales, CBA stated.
“Retail advice lapse rates increased over the year though this trend moderated in the second half,” the bank stated.
There were no costs in the 2012-13 financial year related to the acquisition of Count Financial, with $43 million of retention, advisory and other related costs incurred in the prior year, the bank stated.
The year included $1,237 million worth of “ongoing investment in long term growth”, relating to “a tightly managed set of initiatives focusing on technology, productivity and risk.” This was slightly less than was spent on similar initiatives in the prior year.
The group also pointed to increased costs relating to implementing regulatory changes.
“Spend on risk and compliance projects increased as systems are implemented to assist in satisfying new regulatory obligations, including Stronger Super and Future of Financial Advice reforms,” the bank stated.
The bank announced a final dividend of $2.00 per share and total dividend of $3.64.
Group chief executive Ian Narev said the group had “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.”
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