The Tribune

MORE than 250 Commonwealth Bank shareholders filled the ballroom at SuperClubs Breezes, Cable Beach for the Bank’s annual general meeting to hear a positive report on the bank’s milestone climb to $1.5 billion-plus in assets, record profits and quarterly common dividends which increased by 20% to 6 cents per share in 2011.

Executive chairman William B Sands Jr told shareholders that the bank’s performance for the financial year ended December 31, 2011, remained strong, amassing a net income of $51.8 million - representing the second most profitable year in the bank’s history.

Mr Sands said: “The bank has every reason to feel optimistic about the future and its ability to further develop its capabilities. Now is the time to build on the fundamentals that brought the bank to its current position so it can continue to grow in the future. Our success in 2012 and beyond will be guided by our core principles and strategic objectives which are to remain a consumer based bank; optimise our business model; expand our existing market share and improve operation effectiveness and efficiency while recognising the value of returning capital to shareholders through common dividends.

“Commonwealth Bank continues to demonstrate the strength, stability and prudent management that stakeholders have come to expect and we are extremely pleased with the bank’s financial performance in a challenging operating environment.”

The bank’s president, Ian A Jennings, provided a detailed analysis of the 2011 financial results, explaining that the bank delivered a strong performance despite the current economic environment.

“Commonwealth Bank met and or exceeded most of its objectives. The bank’s performance as measured by Return on Equity (ROE) and Return on Assets (ROA) ratios, commonly used analytical criteria for banks, also remained strong at 26.9% and 3.2%, respectively.

“The bank’s overall profitability ratios remain well above reported industry norms and continue to exceed many of the bank’s own strategic objectives which are to generate an annual return of 25% ROE and 2.25% for ROA.”

Commonwealth Bank asserts that the success and overall quality of the Bank’s credit risk portfolio and ultimately the quality of its revenue generation remains closely linked to the longstanding and conservative credit risk management and reporting systems employed by the bank.

The bank also reported “Success Through Corporate Giving” in 2011, as its education program reached an astounding $1.5 million in school supplies, technological teaching tools and scholarships.

“As a good corporate citizen, we are proud of our deep spirit of giving and recognise that a thriving society is critical to our growth and future success,” said Mr Sands. “In 2011, we continued to bridge the gap with financial support to a broad spectrum of non-profit and faith based organisations, businesses and government in the critical areas of education, health, humanitarian relief, environment, sports and culture.”

The chairman advised shareholders that J Barrie Farrington would not stand for re-election to the Board of Directors after 11 years as a non-executive independent director. Nominated to replace him was Robert Sands, currently senior vice-president of administration and external relations at Baha Mar Ltd.