The Commonwealth Bank has recorded a profit of $6.8 billion for the full year, up 12% on the previous corresponding period, the company announced this morning.
The result, which was in line with market expectations, came alongside a statement from chief executive Ralph Norris in which he warned of ongoing volatility in markets across the world.
“Ongoing offshore instability continues to impact the domestic economy and has the potential to place further upwards pressure on wholesale funding costs for domestic banks,” he said, also commenting that 2011 featured a distinct lack of credit growth.
“At this stage there is nothing to suggest that the 2012 financial year will see any material improvement on this front,” he said.
” Nor is it clear what the catalyst will be for a meaningful revival in consumer and corporate confidence which is prerequisite to stronger demand for credit.”
The company also announced that net profit rose 13% to $6.3 billion and it will pay a dividend of $1.88.
Norris said the bank maintains a “fortress balance sheet”.
Meanwhile, Federal Treasurer Wayne Swan has said that banks will not see any trouble in obtaining credit following the turmoil in global markets.
“None at all, absolutely none at all, our banks are in absolutely great shape… we have some of the strongest banks in the world and they are not experiencing any challenges at the moment,” Swan told CNBC.
The Australian dollar has gained ground after yesterday’s plunge, which saw it drop below parity for the first time in two months as the sharemarket fell nearly 5%.
This morning the local currency had risen back to $US1.03c after the Fed Reserve announced it would maintain interest rates low for the next two years, increasing the attractiveness of riskier assets.
The Australian dollar hit a peak of $US1.11 last month.
David Murray, the chairman of the $75 billion Future Fund, has said it could take up to 20 years for governments to sort out their debt problems.
“When Governments get into excessive debt, they borrow growth from the future and it takes time for growth to revert to more robust levels and for those reasons activity in markets in weakened,” Murray said in an interview this morning.
Murray also questioned whether super funds are over-invested in equities.
Computershare has announced its full year profit fell by 10.4% this year, with the company maintaining a cautious position towards the economy due to ongoing market volatility.
Profit fell to $264 million from $294 million in the 2010 financial year. Revenue remained at $1.6 billion.
“A week ago, we would have said that we do not expect management EPS (earnings per share) results from Computershare’s current portfolio of businesses in FY12 (financial 2012) to be significantly different from those achieved in FY11,” the company said.
“That guidance would have assumed that equity, interest rate and FX (foreign exchange) market conditions remain broadly consistent with then current levels for the rest of the financial year, an assumption that is no longer valid.”
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
