Commonwealth Bank sets profit record for Australian banks

The Commonwealth Bank of Australia on Wednesday set the highest ever profit for an Australian bank, earning 5.66 billion Australian dollars (5.13 billion U.S. dollars) in one year.

The nation's largest bank by market capitalization posted a 20 percent rise in full-year net profit on the back of lower troubled loans.

The result of 5.66 billion Australian dollars (5.13 billion U.S. dollars) was an improvement from the 4.72 billion Australian dollars (4.28 billion U.S. dollars) earned last year, which was a record profit at the time.

The lender's cash earnings, which is one of the most closely measured indicators of bank profitability, came in at 6.1 billion Australian dollars (5.53 billion U.S. dollars), beating market predictions of 6.06 billion Australian dollars (5.5 billion U.S. dollars).

Commonwealth Bank of Australia's Chief executive Ralph Norris said despite some signs of improvement, the global recovery remained uneven and although the Australian economy remained relatively well placed, business and consumer confidence was fragile.

"This fragility manifested itself in a slowing in the underlying momentum in our business at the end of the 2010 financial year," Norris said in a statement on Wednesday.

"As a result, it is appropriate to maintain a degree of caution about the prospects for our business for the coming year."

The bank declared a final dividend of 1.70 Australian dollars ( 1.54 U.S. dollars) a share, compared to 1.15 Australian dollars (1. 04 U.S. dollars) a year ago, and beating market expectations of 1. 62 Australian dollars (1.47 U.S. dollars) a share.

Source:Xinhua