CommBank posts bumper profits as tech investment pays off

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.

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.

Comments: (1)

A Finextra member
A Finextra member 13 February, 2014, 10:24Be the first to give this comment the thumbs up 0 likes

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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