Powered by MOMENTUM MEDIA
subscribe to our newsletter
CBA posts $2.4 billion first quarter profit

CBA posts $2.4 billion first quarter profit

Australia’s biggest bank has delivered strong earnings and improved credit quality over the three months to 30 September.

In a trading update yesterday, CBA advised that its unaudited cash earnings for the three months ended 30 September 2015 were approximately $2.4 billion, 4 per cent up on last year's result.

Statutory net profit on an unaudited basis for the same period was approximately $2.3 billion, with non-cash items treated on a consistent basis to prior periods.

Advertisement
Advertisement

“Across key markets, household deposits balance growth was strong and above system,” the group said.

“Home lending continued to trend in line with recent growth rates, whilst core domestic business lending growth remained at mid-single digit levels (12 months rolling).”

CBA noted that its credit quality remained sound, with arrears levels reducing across all consumer portfolios in line with seasonal expectations.

“Troublesome and impaired assets reduced to $5.5 billion. Total loan impairment expense was $220 million in the quarter, with strong provisioning levels maintained and the economic overlay unchanged,” the group said.

CBA’s Basel III Common Equity Tier 1 (CET1) APRA ratio increased 70 basis points to 9.8 per cent in the first quarter of the 2016 financial year, driven by the proceeds of the group’s entitlement offer and capital generated from earnings, partially offset by the impact of the June 2015 final dividend and higher risk weighted assets.

The major bank’s Basel III Internationally Comparable CET1 ratio as at 30 September 2015 was 13.6 per cent, while its Leverage Ratio was 4.7 per cent at 30 September 2015 on an APRA basis and 5.3 per cent on an internationally comparable basis.

CBA’s long-term funding increased by $8.6 billion in the quarter.

CBA posts $2.4 billion first quarter profit
mortgagebusiness

 

Latest News

The major bank’s net interest margin has been strengthened by its out-of-cycle mortgage rate hikes, contributing to quarterly cash earning...

ASIC’s decision to undertake a review and consider changes to responsible lending guidelines will be “credit positive” for the mortgag...

The banking royal commission has not spurred a deterioration in satisfaction among customers of Australian banks operating in New Zealand, a...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The current mindset of the mortgage industry

Is enough being done to ensure responsible lending?