Slow Wage Increase in Australia, Record Profit at CBA

Marcus Jacob
13 Aug, 2014
New York City

Stocks in Sydney closed lower after CBA reported record annual profit but missed higher expectations set by investors. Wage price increase in June quarter was subdued, the third mild quarterly increase in a row. CBA annual net increased 12% to $8.6 billion. CSL net jumped 8%.

[R]5:00 PM Sydney, Australia – Stocks in Sydney closed lower after CBA reported record annual profit but missed higher expectations set by investors. Wage price increase in June quarter was subdued, the third mild quarterly increase in a row. CBA annual net increased 12% to $8.6 billion. CSL net jumped 8%.[/R]

Australian stocks closed lower after CBA results disappointed investors despite the bank reporting record annual net profit of $8.6 billion.

Wage price index increased 0.6% in the June quarter after rising 0.1% rate in the March quarter, ABS reported today.

The annual wage index increased was 2.6% from the quarter a year ago and still below consumer price index increase of 3%.

Australian dollar closed at 92.96 U.S. cents and stock trading turnover gained to 696 million shares worth $4.75 billion.

ASX 200 index slipped 15.60 or 0.3% to 5,514.70 and the broader All Ordinaries fell 15.20 to 5,507.90.

Stocks in Review

Commonwealth Bank of Australia slipped 0.9% to $80.96 after the bank reported net interest income in the year ending in June dropped 3.1% to $33.65 billion from $34.74 billion a year ago period.

Net profit in the year climbed 13% to $8.63 billion compared to $7.62 billion and diluted earnings per share jumped to $5.22 from $4.61 a year earlier.

The bank declared fully franked final dividend of $2.18 per share and total for the year to $4.01 increasing 10% from a year ago.

CSL Limited jumped 2.6% to $67.24 after the biopharmaceutical company reported revenue in the year ending in June climbed 8.7% to $5.50 billion from $5.10 billion a year ago period.

Net profit in the year soared 8.3% to $1.31 billion compared to $1.21 billion and diluted earnings per share increased to $2.69 from $2.42 a year earlier.

Goodman Fielder Ltd slipped 1.5% to 63 cents after the food ingredients maker said revenue in the year ending in June jumped 3.3% to $2.20 billion from $2.13 billion a year ago period.

Net in the year swung to a loss of $405.1 million compared to profit $83.5 million and diluted loss per share swung to a 20.7 cents from profit of 4.3 cents a year earlier.

Suncorp Group Ltd climbed 2.6% to $14.49 after the banking and life insurance group reported revenue in the year ending in June rose 1.1% to $16.37 billion from $16.19 billion a year ago period.

Net profit in the year surged 48.6% to $737 million compared to $496 million and diluted earnings per share increased to $5.71 cents from $3.84 a year earlier.