Commonwealth Bank’s cash profits in its first quarter rose 2 per cent to $2.6 billion, as the banking giant reported stronger momentum in its massive mortgage and deposit portfolios, alongside growth in business banking.
A trading update from CBA on Tuesday said its unaudited profits for the three months to September were 2 per cent higher than the same period last year, as operating income rose 3 per cent on the back of loan and deposit growth.
Commonwealth Bank chief executive Matt Comyn said households and businesses had felt some relief from the decline in interest rates this year.Credit: Glenn Campbell
CBA said it had grown its home loan book by $9.3 billion in the quarter, slightly more than the industry average, while it hoovered up an extra $17.8 billion in household deposits – which was also faster growth than the market average.
The bank said its charges for bad loans was broadly flat, with lower consumer arrears and lower charges for troubled business corporate loans.
Chief executive Matt Comyn said cost of living pressures were challenging for many customers, but households and businesses had felt some relief from the decline in interest rates this year. He said the bank had a positive view on Australia’s economic prospects.
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“Despite escalating geopolitical and macroeconomic uncertainty, we are optimistic on the outlook for the country. We are closely watching the increased competitive intensity and implications across the financial system, and we will continue to adjust our settings as appropriate,” Comyn said in a statement.
“The Australian economy remains resilient. Economic growth is recovering and disposable income is rising for many households. We remain focused on our strategy to build a brighter future for all.”
CBA’s quarterly update caps off a round of results from the country’s major banks over this week and last.
