CommBank posts bumper profits as tech investment pays off

Commonwealth Bank of Australia has credited investment in technology as a major factor in its impressive 14% rise in first half profits.

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CommBank posts bumper profits as tech investment pays off

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

CommBank beat analysts' forecasts to report cash earnings of A$4.27 billion for the six months to December, up from A$3.86 billion in 2012.

Ian Narev, group CEO, CommBank, says: "This result again demonstrates the benefits of our long term strategic priorities - people, technology, strength and productivity."

Investment spending on areas such as tech during the six months was A$589 million and Narev says that the money pumped into customer-facing innovations is beginning to pay off.

Since launching at the end of last year, the new CommBank mobile app has attracted more than a million registered users, while a streamlined online account opening processes has slashed times by 80%.

Meanwhile, Narev is focussing on revamping the bank's branch network for an increasingly digital age, rolling out smaller, tech-packed 'express' stores and introducing video-conferencing across the network.

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Comments: (1)

A Finextra member 

Some of the cashless eggs are coming home to roost. The CBA has heavily invested in mobile technology and the people have voted with their feet. It is a long way off but the cashless society is as inevitable as global warming. 

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