Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank of Australia (ASX: CBA) Provides banking and financial products and services

1912

FOUNDED

LARGE

SIZE

BANKS

Industry

Product / Service

  • The Commonwealth Bank of Australia (CBA) provides a range of financial services, including retail, business and institutional banking, funds management, superannuation, insurance and broking

  • CBA operates seven business units:

    • Retail Banking – includes home loans, credit cards, personal loans, transaction accounts and term deposits for consumers

    • Business & Private Banking – provides specialised banking services to business and agribusiness customers, as well as private banking to high net worth individuals, margin lending and share trading.  Products and services include margin lending and trading, business loans and business finance

    • Institutional Banking & Markets – manages relationships with major corporate and government clients as well as institutional investors.  Products and services include debt raising, risk management and banking

    • Wealth Management – includes funds management, superannuation, insurance and financial advice

    • New Zealand - includes Banking, Funds Management and Insurances businesses operating in New Zealand

    • Bankwest - CBA’s wholly owned subsidiary that offers banking and lending services to rural, business and retail customers

    • International Financial Services – includes overseas enterprises in Indonesia, China, Vietnam and India

  • There are five support divisions including Financial Services, Risk Management, Enterprise Services, Human Resources and Group Corporate Affairs

  • CBA owns other financial brands including Colonial First State (wealth management) and CommSec (online stock broking)

History

  • The Commonwealth Bank opened for business on 15 July 1912 as a bank of the Federal Government of Australia.  It was empowered to conduct savings and general bank business

  • Throughout the 20th Century, many State Government banks were amalgamated into the Commonwealth Bank

  • In 1959, the Commonwealth Bank split its operations as the nation’s central bank and a trading/savings bank.  The split resulted in two new entities: the Reserve Bank of Australia and the Commonwealth Banking Corporation

  • The Commonwealth Bank listed on the ASX in 1991 with the remainder privatised in three stages between 1991 to 1996

Customers

  • CBA’s customers include retail, businesses, institutions and governments

Operations

  • The company is headquartered in Sydney

  • The company’s operations are predominantly in Australia, but also have an international presence through:

    • Retail Banks in New Zealand and Indonesia

    • Banking investments in China

    • Life insurance operations in New Zealand, Indonesia

    • Banking branches and ATMs around the world

To excel at securing and enhancing the financial wellbeing of people, businesses and communities

Profitability Table

Year Revenue ($m) % change Net Profit Before Tax ($m) % change
FY 2009 17,466 8.8 5,852 (8.4)
FY 2010 19,059 9.1 8,383 43.3
FY 2011 19,659 3.1 9,488 13.2
FY 2012 20,150 2.5 9,865 4.0
FY 2013 20,821 3.3 10,729 8.8
FY 2014 22,401 7.6 11,949 11.4
FY 2015 23,578 5.3 12,597 5.4
FY 2016 24,747 5.0 13,062 3.7

Fun Facts

  • CBA employs over 52,000 people

  • During FY 2015, CBA acquired TYME – Take Your Money Everywhere – a South African based company that designs and builds digital banking technology

  • Ian Narev’s (CEO) total remuneration for FY 2016 was $12.3m

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