CBA's bet on technology pays off: CEO

Commonwealth Bank of Australia chief executive David Murray said the bank was in a better position to compete than its competitors as a result of technology investments it had made in recent years.

Claiming the bank was "better rigged" technology-wise, Murray said the finance industry is being hit with slowing volume growth and rising competition.

Pointing to the CBA's massive, 50 percent rise in half-yearly net profits to $1.86 billion last week, Murray told Channel Nine's Business Sunday program the "Which New Bank" program had changed its processes to meet new demands.

"You can only use technology to do that and you must invest to do that," he said confirming CBA's 25 to 40 percent earnings per share growth for 2004/05.

"The consequence is that we're better rigged to deal with this sort of competition and where that came up in these [half-year profit] results was ... volume growth."

This takes its annual growth rate for the three years of the "Which new Bank" transformation ending 2005/06, to 12 percent, up from its previous forecast of 10 percent.

Murray rejected suggestions he may replace Ziggy Switkowski as chief executive of Telstra.

"I'm not considering it," he said.

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