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Commonwealth Bank of Australia (CBA) said funds under administration ("FUA") were up 1.5% in the December quarter to $193 billion. Meanwhile, funds under management ("FUM") rose 1% to $149 billion.

Investors will look to the result to get a sense of Wealth Management’s contribution to the group’s half-year results.

The 1.5% growth in FUA over the December quarter is a significant slowdown from the 8.3% growth reported for the three months to September. Over the half, growth in FUA was 9.9%.

CBA noted that Net flows in FUA were negative $0.3 billion in the December Quarter, following net flows of $2.3 billion in the September quarter.

CBA said this is impacted by outflows form wholesale short term cash mandates.

“Retail net flows continue to be positive with FirstChoice net flows up 5% to $935 million in the quarter,” CBA added.

Looking to FUM, the 1% increase in the December quarter was preceded b a 6.8% increase in the previous quarter for half year FUM growth of 7.8%.

CBA said insurance Inforce premiums at 31 December 2009 were down 5.9% over the quarter to $1.5b billion, driven by loss of the $130 million Australian Super group scheme.

The bank added that retail life and general insurance attracted solid new business volumes driving growth in Inforce premiums of 2.3% percent and 3.7% respectively for the quarter.

CBA will release its half-year results on 10 February. The bank has already pre-announced its result, saying it expected a cash NPAT of  $2.9 billion for the six months to 31 December 2009.

At 1015 AEDT, Commonwealth Bank of Australia shares were up 15c to $54.78.

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