Financial Results

Commonwealth Bank Raises Half-Year Earnings Forecast

Vanessa Doctor Asia Editor 19 January 2010

Commonwealth Bank Raises Half-Year Earnings Forecast

The Commonwealth Bank of Australia has said it expects a 44 per cent rise in cash earnings for the six months to 31 December.

The bank gave a surprise announcement before markets closed last week with an upgraded profit forecast of A$2.9 billion ($2.67 billion) -- a result significantly above its prior and analysts' expectations of A$2.7 billion.

CBA said that solid income growth across its banking business was the key driver of the increase, including efficient cost management, good volume growth, a drop in impairment expenses, and improving equity markets.

"The result reflects a continuation of the momentum reported on 9 November 2009 in the group's September quarter trading update," the statement said.

The stock went up three per cent to $58.10 just before Friday's close. The sharemarket had been in the red throughout the session but CBA's announcement managed to boost the S&P/ASX 200 benchmark by 1.6 points to 4899.6.

Full results for the said period will be announced on 10 February, after all accounts have been audited and reviewed. 

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes