Commonwealth Bank of Australia (CBA) is Australia's largest retail bank and one of the 'Big Four'. It also operates in New Zealand and Asia. Its core business is the provision of retail, business and institutional banking services. It also is a major participant in Australia's wealth management sector with products covering superannuation and life insurance as well as retail and wholesale fund management.

CBA's strategy is focused on Australia, New Zealand and Asia. The CEO´s strategic priorities are customer service, business banking, technology and operational excellence, trust and team spirit, and profitable growth. CBA has invested heavily in customer service training and new staff to recover market share losses in home loans and deposits. The bank has recruited new business bankers and has upgraded its service offer. In IT there is a new shared services approach. CBA aims to improve staff engagement and reduce turnover. The bank sees medium-term growth opportunities in Asia and has built a portfolio of holdings in Asian banks. CBA avoids business it perceives to be high-risk or which doesn´t meet its return criteria; the aim is to keep credit quality strong.Commonwealth Bank of Australia reported NPAT up 14% to $4.47bn for the year ended 30 June 2007. Revenues from ordinary activities were $33.17bn, up 16% from last year. Diluted EPS was 339.7 cents compared to 303.1 cents last year. Net operating cash flow was $5.64bn compared to $1.15bn last year. The final dividend was 149 cents, taking the full year dividend to 256 cents compared with 224 cents last year. The group states that given the mix of its business and, in particular, its strong retail franchise, it is well-positioned to continue to deliver strong returns in FY08 despite instability in global financial markets. Credit growth for the 2008 financial year is likely to remain strong although growth in business credit, which ran at nearly 19% in the 2007 year, may begin to slow. The current high level of competitive intensity is not anticipated to decline in the coming year. Taking all factors into consideration, the Group expects to again deliver EPS growth in the coming year which meets or exceeds the average of its peers through a continued focus on delivering exceptional customer service and profitable growth.

30/06/07

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