(9 August 2017 – Australia) Commonwealth Bank of Australia (CBA) posted a record annual cash profit fuelled by demand for home loans.
The bank recorded a three percent rise in earnings although bad debt charges jumped led by a commodity slump.
Cash profit rose to A$9.45 billion, compared with A$9.14 billion in the same period last year. Net interest income was up seven percent at A$16.9 billion.
“At CBA, we are cognizant of the combined impact of weaker demand, strong competition and increasing regulation,” CEO Ian Narev said.
“An ongoing focus on productivity and credit quality will be important. But we remain positive about Australia's economic prospects.”
CBA said its net interest margins fell two basis points to 2.07 percent.
Loan impairment expense (LIE) increased 27 percent, largely due to higher provisioning for resource, commodity and dairy exposures, it added. The ratio of LIE to gross loans was 19 basis points, still near historically low levels.