Lower credit card loyalty fees 'affect Commonwealth Bank results'

The Commonwealth Bank's recent financial results were affected by lower credit card loyalty fees.

Lower credit card loyalty fees have affected the recent Commonwealth Bank financial results, the company has noted.

The organisation made a 20 per cent increase in its statutory net profit after tax for the year ending June 30th 2010 compared with the same period in 2009.

And while it also reported an 11 per cent net interest income growth, which was reflected by solid retail lending, banking income was down by three per cent.

The firm noted that this was due to lower loyalty fees on credit cards, as well as profits from ATMs that combined with decreased trading returns.

Commonwealth Group chief executive officer Ralph Norris said the overall result was a positive one and the needs of both consumers and shareholders have been met.

He added: "Our financial strength and the resilience of our business franchise have again delivered excellent outcomes for our stakeholders."

Last month, the company's business sales index - which tracks the value of Aussie credit and debit card transactions purchased through its point-of-sale terminals - revealed that spending across the economy had lessened over the month of June.

By Joe Letts