Commonwealth Bank - Comments on Statement of Financial Position As at 30 June 2003 - Comments on Statement of Financial Position As at 30 June 2003
 

Comments on Statement of Financial Position As at 30 June 2003

Chart of Total Assets Chart of Lending assets

Group Assets

The Group’s assets increased by $16 billion to $265 billion (2002: $249.6 billion) over the year.

Total lending assets increased by $14 billion from $161 billion to $175 billion at 30 June 2003 reflecting strong housing loan growth.

The total provisions for impairment for the Group at 30 June 2003 were $1,530 million down 6% from 30 June 2002. This level of provisioning is considered adequate to cover any bad debt write offs from the current lending portfolio.

The general provision as a percentage of Risk Weighted Assets now sits at 0.90% following a steady decline from 1.09% at 30 June 1999.

Capital Management

The Group maintains a strong capital position. As at 30 June 2003, the Capital adequacy Ratio was 9.73% (well above the regulatory guideline of 8%), compared to 9.80% at 30 June 2002.

Credit Ratings

The long-term credit ratings of the Bank remain at AA–, Aa3 and AA from Standard & Poor’s, Moody’s and Fitch respectively.

Issue of Trust Preferred Securities

On 6 August 2003 the Bank, via a wholly owned entity of the Bank, issued USD 550 million (AUD 824 million) of trust preferred securities in the US capital markets. The securities will qualify as Tier 1 capital of the Bank.