CBA lifts profit to $1.9bn

Source: AFP

COMMONWEALTH Bank says quarterly cash earnings jumped 8.6 per cent, but has warned that a competitive market is putting pressure on its loan deposit margins.

Australia's biggest bank today said cash earnings had risen to $1.9 billion in three months to March, up from $1.75 billion in the same period last year. Net profit for the period was $1.9 billion, up 12 per cent.

"Revenue growth continued to reflect a combination of conservative business settings and modest system credit growth,'' the bank said today.

Commonwealth Bank in February delighted investors after beating expectations with a "cracker'' first-half result.

The bank cash profit - a measure of its underlying performance - surged 6 per cent to $3.78 billion for the six months to December. Analysts said the latest quarterly result would again please shareholders.

"Commonwealth Bank continues to deliver earnings of increasing quality and strength,'' Morningstar head of financials David Ellis said. "Quarterly earnings are in line with our expectation, and our positive view is intact."

"Our 2013 cash profit forecast of $7.5 billion needs to be reassessed with an earnings upgrade likely."

"Importantly, future dividends look increasingly sustainable.''

The bank last week passed on in full the Reserve Bank's 25 basis point interest rate cut. Commonwealth Bank shares opened more than 1 per cent higher this morning at $72.85.

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Singapore Airlines lifts stake in Virgin

SINGAPORE Airlines has lifted its stake in domestic airline Virgin Australia to 19.9 per cent, from 10 per cent.

Singapore Airlines said it had acquired 255.5 million shares in Virgin Australia from the Virgin Group at 48 Australian cents per share, for a total of $122.6 million.

"Increasing our stake in Virgin Australia is another example of Singapore Airlines' deep commitment to the important Australian market," Singapore Airlines chief executive Goh Choon Phong said today. "It also demonstrates our support for the ongoing transformation of Virgin Australia, which has created a more competitive aviation market in Australia."

Singapore Airlines acquired 10 per cent of Virgin Australia in late 2012 through an injection of funds in Virgin Australia.

The two airlines entered into a long-term partnership in 2011, encompassing codesharing, reciprocal frequent-flyer program benefits and lounge access, co-ordinated schedules, and joint sales, marketing and distribution activities.

The purchase of the additional shares in Virgin Australia is subject to approval from Australia's Foreign Investment Review Board.

Shares in Virgin Australia were one cent higher at 46.5 cents at 3.06pm AEST.

The move by Singapore Airlines comes a day after Australia's consumer watchdog approved Virgin Australia's proposed acquisition of a 60 per cent stake in budget carrier Tiger Airways Australia.

Kimber Capital head of research Greg Fraser said Singapore Airlines wants to have a bigger say in how Virgin Australia develops.

"They (Singapore Airlines) clearly have more confidence in the way the company (Virgin Australia) is shaping up, now that they (Virgin Australia) have got Tiger in their end," Mr Fraser said.

Air New Zealand holds a stake of about 19 per cent in Virgin Australia, and Etihad Airways has about 10 per cent.

Mr Fraser said Singapore Airlines wanted to ensure that a large amount of international travellers going between Australia and Asian destinations travel via the Singapore Airlines/Virgin Australia Alliance.

Mr Fraser said that if Virgin Australia completes the acquisition of a 60 per cent stake in Tiger Australia, Virgin Australia will be able to focus on competing with Qantas in the business travel market.

Tiger Australia will compete with Jetstar in the budget travel market.

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Customer focus lifts Woolworths sales

Suppliers accuse Coles and Woolworths of bully tactics. Picture: File Source: news.com.au

RETAIL giant Woolworths says a clearer focus on what customers want has helped drive third quarter sales up 2.5 per cent to $14.4 billion.

Excluding the impact from the Dick Smith electronics business, which was sold in September, the group's sales for the 13 weeks to March lifted 5.7 per cent.

Woolworths chief executive Grant O'Brien said the positive momentum in the sales results showed customers were responding to targeted promotions and a better understanding of shoppers' needs.

"Our customers like the way we are using the insights we have on their needs through the investment we have made in customer engagement,'' Mr O'Brien said. "We are finding that customers feel empowered by the options we can provide them.''

Sales at Woolworths' core Australian food and liquor operations, rose 5.6 per cent to $9.9 billion.

Mr O'Brien said Easter trade had been pleasing and the supermarkets had continued to increase market share, customer numbers, and the number of items sold each visit.

"Utilising customer insights to target promotions continues to deliver beneficial results,'' he said.

Discount department store BIG W reported a 3.4 per cent lift in sales to $963 million, despite prices continuing to fall.

"Big W's trading for the quarter was supported by solid back-to-school and Easter promotional activity as we continue to focus on events and promotions that are profitable and attractive to our customers,'' Big W director Julie Coates said.

Ms Coates said the group planned to add a further two stores to the 176-strong network by the end of June.

Woolworths' hotel sales rose 19.7 per cent to $353 million, boosted by acquisitions during the first half, as well as changes to the Victorian gaming regulations which came into effect last August.

The group's home improvement division also lifted sales by 37.4 per cent, aided by the addition of four new Masters hardware stores.

Mr O'Brien said Woolworths also continued to improve its online offer, with web sales across all the group's businesses up by a total of 36 per cent.
 

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Customer focus lifts Woolworths sales

Suppliers accuse Coles and Woolworths of bully tactics. Picture: File Source: news.com.au

RETAIL giant Woolworths says a clearer focus on what customers want has helped drive third quarter sales up 2.5 per cent to $14.4 billion.

Excluding the impact from the Dick Smith electronics business, which was sold in September, the group's sales for the 13 weeks to March lifted 5.7 per cent.

Woolworths chief executive Grant O'Brien said the positive momentum in the sales results showed customers were responding to targeted promotions and a better understanding of shoppers' needs.

"Our customers like the way we are using the insights we have on their needs through the investment we have made in customer engagement,'' Mr O'Brien said. "We are finding that customers feel empowered by the options we can provide them.''

Sales at Woolworths' core Australian food and liquor operations, rose 5.6 per cent to $9.9 billion.

Mr O'Brien said Easter trade had been pleasing and the supermarkets had continued to increase market share, customer numbers, and the number of items sold each visit.

"Utilising customer insights to target promotions continues to deliver beneficial results,'' he said.

Discount department store BIG W reported a 3.4 per cent lift in sales to $963 million, despite prices continuing to fall.

"Big W's trading for the quarter was supported by solid back-to-school and Easter promotional activity as we continue to focus on events and promotions that are profitable and attractive to our customers,'' Big W director Julie Coates said.

Ms Coates said the group planned to add a further two stores to the 176-strong network by the end of June.

Woolworths' hotel sales rose 19.7 per cent to $353 million, boosted by acquisitions during the first half, as well as changes to the Victorian gaming regulations which came into effect last August.

The group's home improvement division also lifted sales by 37.4 per cent, aided by the addition of four new Masters hardware stores.

Mr O'Brien said Woolworths also continued to improve its online offer, with web sales across all the group's businesses up by a total of 36 per cent.
 

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Ease in Cyprus fears lifts dollar slightly

THE Australian dollar is slightly higher after US shares rose amid optimism of a solution to the Cyprus financial crisis.

At 6.30am AEDT today, the local unit was trading at 103.83 US cents, up from 103.79 cents yesterday.

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Ease in Cyprus fears lifts dollar slightly

THE Australian dollar is slightly higher after US shares rose amid optimism of a solution to the Cyprus financial crisis.

At 6.30am AEDT today, the local unit was trading at 103.83 US cents, up from 103.79 cents yesterday.

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Toll lifts first half profit by 20pc

TRANSPORT and logistics group Toll Holdings has lifted its first half profit by more than 20 per cent and expects stronger earnings for the rest of the year.

Toll's net profit rose to $192 million in the six months to December 31, from $158 million in the previous corresponding period.

Sales revenue rose 2.5 per cent to $4.5 billion from $4.4 billion.

Toll lifted its fully-franked interim dividend by one cent to 12.5 cents a share.

Managing director Brian Kruger said Toll would continue to focus on winning business and improving its operations as he did not expect the external economic environment would get any better in the short term.

"Overall, the company expects its results for the second half of the year to be better than for the same period last year," he said in a statement on Wednesday.

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