Commonwealth Banks reports record profit

THE Commonwealth Bank has recorded the biggest profit ever by an Australian bank.

The bank saw its cash profit increase by 10% to $7.8 billion for the 2012-2013 year.

Net profit after tax increased by 8% over the same period.

Commonwealth Bank group chief executive officer Ian Narev attributed the significant result to achieving a six-year goal for customer satisfaction, a careful balance between volume growth and margin and a strengthened balance sheet.

"We have delivered good financial returns for our shareholders," he said.

"We have momentum in all of our businesses, due to the hard work of our people and their commitment to enhancing the financial wellbeing of our customers."

Fully franked dividends also rose 9% to reach a full year dividend of $3.64 per share.

Looking forward to the 2014 financial year, Mr Narev expected to face similar underlying conditions for the business.

He said the global economy remained similar to what it was six months ago and the primary focus areas included business and consumer confidence, resources demand and the Australian dollar value.

"Indicators relating to all of these factors have been mixed over the past six months, and we expect that to remain the case in the near term," he said.