C.B.A. 1:4 bonus after windfall

Press, 28 February 1981, Page 19

C.B.A. 1:4 bonus after windfall

The Commercial Bank of Australia, Ltd, has reported a windfall gain of sAustl6.7 million on share sales in the six months to December 31 and the directors have channelled the profit to shareholders by declaring a one-for-four bonus issue. The. extraordinary profit of $16.7M came at an opportune time for the group as earnings on its traditional activities were static. The directors left the interim dividend steady at 10c a share, but announced that the group would make a one-for-four bonus issue of almost 17 million 100 c shares. The capital profits came mainly from the sale of the group’s shares in Henry

Jones (1.X.L.) Ltd, (held by General Credits) and. of Marac Holdings, Ltd. Over all profit for the six months ended December 31 rose from $21.1M to $36.5M. Group operating profit for the half year was marginally below the same period in 1979, because of increased premises costs, and the squeeze on bank interest margins caused by restrictive official interest rate policies” the chairman (Mr S. M. Kimpton) said. “After relaxation of official interest rate policies in December, and other corrective measures taken, a marked improvement in profitability has been obtained in the December quarter particularly in Australian banking,” Mr Kimpton said.