Commonwealth Bank lifts third quarter profit
According to a recent article by AAP, Commonwealth Bank of Australia has lifted its third quarter profit by 12 per cent to $1.9 billion.
Australia’s largest home lender said market conditions remained subdued during the three months to March 31, but it managed to grow its loan and deposit portfolios above the banking industry’s average rate.
CBA’s unaudited net profit in the period was up from $1.75 billion in the same period last year said AAP.
The bank’s cash profit in the three months to March, which excludes one-off financial items, was also approximately $1.9 billion, up 8.5 per cent on the previous corresponding period according to the article.
“Revenue growth continued to reflect a combination of conservative business settings and modest system credit growth,” the bank said in a statement on Wednesday.
“System home loan credit growth remained modest through the March quarter, with the group growing slightly ahead of system.
“Growth in household deposits was also above system.
“Deposit margins remained under pressure in a competitive market.”
Morningstar analyst David Ellis said CBA’s earnings momentum meant higher dividends looked more sustainable.”Importantly, future dividends look increasingly sustainable.
“CBA continues to get the basics right, extracting attractive earnings growth from a low credit growth environment – an outcome we have long argued to be very achievable.”
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The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.