Commonwealth Bank of Australia (CBA) today announced it would not be acquiring ABN Amro in Australia and New Zealand.
The lender said it had withdrawn from discussions with ABN Amro's parent, Edinburgh-based Royal Bank of Scotland.
"The bank advises that it has made this decision after its board assessed the current economic climate, the uncertainty in world financial markets and the risks involved in integrating these complex businesses at this time," a CBA statement to the Australian Securities Exchange said.
"The bank believes that given these factors it would not be in the best interests of shareholders to proceed with the acquisition in this environment."
The country's biggest bank by value said it would continue to focus on its institutional banking and markets division through organic growth.
CBA also announced a rise in full-year profit, underpinned by a strong performance by its wealth management division.
It recorded an overall 5 per cent increase in cash net profit after tax to $4.73 billion for the year ended June 2008.
Underlying profit after tax for CBA's wealth management business, which includes Colonial First State, jumped 18 per cent to $740 million in the same period.
