Commonwealth Bank

Commonwealth Bank of Australia (“CBA”) is the largest bank in Australia and one of the world’s twenty largest banks in terms of market capitalization.

 

The Bank’s total asset was AUD 780 billion (about RMB 4,682 billion) on June 30, 2009.Net profit-after-tax (statutory basis) in the fiscal year from July 1, 2008 to June 30, 2009 was AUD 4,723 million (about RMB 28,338 million), a decrease of 1 percent from the prior year.  Net profit-after-tax (cash basis) was AUD 4,415 million (about RMB 26,490 million), a decrease of 7 percent from the prior year.

 

As the Bank did not have sub-prime mortgage problems and very limited exposure to credit default swaps, the financial turmoil has limited impact on CBA compared to U.S. and European banks.

 

Because of the financial turmoil’s strong impact on European banks, CBA had the opportunity to acquire BankWest in Western Australia from the European bank HBOS This acquisition further consolidated the Bank’s leading position in Australia.

 

Within the CBA Group, First State Fund Management and CBA Insurance occupy leading position in Australia’s funds management and insurance markets.

 

In Asia, CBA has branches in Hong Kong, Tokyo, Singapore, Vietnam and a wholly-owned subsidiary bank in Indonesia.  CBA has received Chinese regulatory approval to establish its Shanghai Branch which is expected to open for business by the end of this year.  In funds management, First State Fund Management has fund management companies in Hong Kong and Singapore.  And in China, CBA is the joint-venture partner of the Cinda Group in First State Cinda Fund Management Co., Ltd. headquartered in Shenzhen.  In insurance, CBA is the foreign JV partner in China Life-CMG Life Assurance Company Ltd. based in Shanghai.

 

CBA commenced strategic partnerships with QiLu Bank (previously “Jinan City Commercial Bank”) and Hangzhou Bank, in September 2004 and April 2005 respectively, and has 20% shareholdings in each of these Chinese banks.

 

In the past five years, in implementing the strategic cooperation with its Chinese partner banks, CBA has successfully completed over 40 Capability Transfer Projects, and has also contributed to improving the banks’ corporate governance, management skills and staff training & development.