The Commonwealth Bank is cautiously positive about the outlook for the 2015 financial year, says chairman David Turner.
“Whilst business and consumer confidence have remained fragile, the levels of underlying activity confirm the strong foundations of the Australian economy,” he told the bank’s AGM.
Lower interest rates have been positive for the housing and construction industry, where increased activity has gone some way to offset the impact of the reduction in investment in the resources sector.
Turner says the past twelve months have also been a period of relative stability in the global economy, although downside risk remains.
“If the stability in global markets continues, we expect to see gradual increases in consumer spending and demand for credit from businesses over the coming year,” he says.
Australia’s biggest bank reported a 12% rise in cash profit to $8.680 billion for the 12 months to the end of June.