Funds management continues to represent a challenge for the Commonwealth Bank despite it forecasting a better than expected 2008-09 first half net profit after tax of $2 billion.
According to the bank, funds management income was likely to be down by the order of around 12 per cent on the prior comparative period.
However, looking at the broader forecast result, the bank said the result was more than 20 per cent ahead of market consensus but still 16 per cent lower than the prior comparative period.
According to Commonwealth chief executive officer Ralph Norris, the key components of the result were a 15 per cent increase in total operating income to around $8 billion, driven by the strong performance of the group’s banking business.
The announcement said insurance income was anticipated to grow by around 10 per cent relative to the same period last year.
