CommBank defends monster profit
The Commonwealth Bank (ASX: CBA) defended its record net cash profit of $6.1 billion, up 42 per cent from last year, saying the group supported thousands of Australians through employment and dividend payouts.
Speaking to analysts this morning, CBA chief executive Ralph Norris made a point of explaining where the bank's profits go.
He said 74 per cent of CBA's profits were paid out to shareholders.
"They will receive $4.5 billion in dividends for this financial year and most of that will go directly to mums and dads or indirectly to millions of Australians via their superannuation funds."
Mr Norris said its shareholders are only one of a number of groups who shared in the $18 billion of revenue generated each year.
"As an organisation, we employ over 45,000 people, and in a period where many global banks have been reducing headcount, we actually increased the number of employees in the 2010 year as we have grown our business," he said.
"Last year we paid our people over $4.5 billion, which helped support families and communities right across Australia."
About $4 billion was shelled out on products and services provided by external companies, stimulating economic activity, Mr Norris said.
A further $2.9 billion was paid in tax, while CommBank is reinvesting in its businesses to make sure it stays strong.
With Westpac, the NAB and the ANZ also slated to post massive profits in the coming months, the major four could reap $20 billion between them.