CBA See’s Increase In Funds Under Management.

Post by NeilMc on July 23, 2009 · Under Australian Economy, Business News, Company News, Wealth Management, banking, investments · Comment

Australian banking major Commonwealth Bank of Australia (CBA) says it has seen growth in assets is has under management along with a rise in insurance premiums during the most recent quarter ending June, as sentiment in the market continues to improve.

Australia’s largest mortgage lender said on Wednesday that the funds that is it manages had increased by 8 per cent to $138.2 billion during the quarter ending June 30th, from the previous quarter ending March.

The biggest gains were made in its global equities fund management, which rose 18.6 per cent and stands at $35.7 billion, whilst its domestic counterpart Australian equities increased by 9.4 per cent to stand at $17.7 billion under management.

The only major asset class which fell was property and infrastructure, which declined 2.7 per cent for the quarter ending June and stood at $23.3 billion.

CBA chief executive Ralph Norris had made comments during the quarter suggesting that whilst the operating environment was still difficult, he felt that global markets had recovered and were no longer experiencing free fall.

The amount of funds administered by the lender rose 6.9 per cent for the quarter and stood at $173.3 billion.

CBA’s investment platform, part of its acquisition Colonial First State, saw an increase of 10.6 per cent for the June quarter in funds under administration, bringing the total to $35.9 billion.

Australia’s biggest life insurer said in-force insurance premiums rose 3.7 per cent over the quarter to $1.5bn due to strong business volumes in life and general insurance.

During the March Quarter CBA’s in-force insurance premiums rose by as much as 9.1 per cent, with the lender claiming to have seen an increase in its market share. Adverse events during the second half of the quarter including the Queensland storms and Victorian bush fires must have lead to a larger claim ratio.

CBA is scheduled to report full year operating results on August 12th.

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