Commonwealth Bank posts $2.4 billion profit on loan growth

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Commonwealth Bank posted profits of about $2.4 billion in the three months to March, which was flat on previous quarters as loan growth helped the bank offset a squeeze on its profit margins.

In a trade update Thursday, the ABC said unaudited cash earnings in the three months to March were in line with the quarterly average for the half of December.

CBA chief executive Matt Comyn said the bank implemented its strategy of focusing on its core retail and corporate banking businesses during the quarter, and highlighted the growth in its portfolio .Credit:Louie Douvis

While the CBA’s operating revenue from interest and fee charges fell 1%, the lender’s operating expenses fell 2%, and the bank also saw strong growth in loans and deposits.

The CBA, the nation’s largest bank, said home loans rose by $6.9 billion, household deposits by $8.5 billion and business loans by $3 billion.

Chief Executive Matt Comyn said the bank implemented its strategy of focusing on its core retail and corporate banking businesses during the quarter, and highlighted the growth in its portfolio.

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“Continued growth in household deposits, home loans, business loans and business deposits was a feature of the quarter. The group maintained strong balance sheet metrics and paid $3 billion in semi-annual dividends to shareholders,” Comyn said.

“Looking forward, we are well placed to support business investment to build Australia’s future economy. Through the disciplined execution of our strategic program, we will continue to serve our customers, our communities and our shareholders as we build the bank of tomorrow today.

Quarterly reports are sparse, but markets were expecting a quarterly result of around $2.1 billion, according to an earlier note from investment house Jarden.

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