THE NEWS WRAP: Commonwealth Bank set to deliver $7 billion annual profit

The Commonwealth Bank has announced it is on track to deliver a record $7 billion annual profit, off the back of strong growth from its retail business.

 

The bank’s retail arm, which is responsible for one in every four Australian home loans, posted a 13% jump in profits to $1.5 billion.

 

The news sent CBA shares up to $67.11 on Wednesday, with its market capitalisation hitting $108 billion.

 

Generic brands slice Goodman Fielder revenues and earnings

 

Baking and grocery group Goodman Fielder has reported a drop in sales and earnings, citing rising input costs and tough competition from generic supermarket brands.

 

The group reported a 9% year-on-year half year drop in sales to $1.2 billion, down 9%, and a 17% drop in earnings to $95 million, despite an 8% rise in the price of branded fresh-baked bread since November.

 

Chief executive Chris Delaney also announced the company is in the process of renegotiating its contracts to supply generic bread to Coles, with Delaney describing the current contracts as a “mistake”.

 

ACCC to finalise fuel shopper docket investigations by mid-year

 

Consumer watchdog the ACCC has announced that it will finalise investigations into the impacts of fuel shopper dockets by the middle of the year.

 

ACCC chief Rod Sims told a senate estimates committee the investigation could lead to legal action against Woolworths and Wesfarmers for abuse of market power over their use of promotional offers, among other potential breaches.

 

“The allegations suggest behaviour that does not conform to acceptable practices… Such an imbalance can have important consequences,” Sims told the inquiry.

 

Overnight

 

In New York, the S&P500 was 0.16% lower at 1517.02. The Aussie dollar was flat at $US103.5 cents.

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