CBA profits jump 30 percent
(13 May 2010 Australia) The Commonwealth Bank of Australia has reported unaudited cash earning for the third quarter of A$1.5 billion saying that solid volume growth and improvements in customer satisfactions have contributed to the 30 percent year-on-year increase.
The bank said in its trading update that impairment expenses for the quarter were approximately A$5 million, with improvements in CBA’s Institutional and SME segments balanced by the continued work-through of legacy issues in the Bankwest commercial book.
CBA reported strong balance sheet provisioning and maintained coverage ratios, with the ratio of Total Provisions to Credit Risk Weighted Assets improving to 2.17 percent.
An improvement was also visible in the group’s Tier 1 capital ratio, strengthening to 2.17 percent.
The bank said that its retail bank continued to perform strongly, highlighted by solid volume growth and ongoing efficiency gains; noting also that deposit growth was relatively strong in a competitive market.
Ralph Norris, CBA’s chief said that despite the economic outlook improving, operating conditions remain challenging. Credit growth continues to be muted, and margins remain under pressure from higher funding costs.
Recovery from the global financial crisis will take time and there will be challenges along the way, evidenced by the current debt issues in the European Union, Mr Norris noted.
Given this uncertainty, CBA is retaining its conservative business settings, Mr Norris highlighted.
The unaudited result, which was roughly in line with market forecasts, confirms the trends demonstrated by CBA's peers, who have reported half year earnings in recent weeks.
CBA reported strong balance sheet provisioning and maintained coverage ratios, with the ratio of Total Provisions to Credit Risk Weighted Assets improving to 2.17 percent.
An improvement was also visible in the group’s Tier 1 capital ratio, strengthening to 2.17 percent.
The bank said that its retail bank continued to perform strongly, highlighted by solid volume growth and ongoing efficiency gains; noting also that deposit growth was relatively strong in a competitive market.
Ralph Norris, CBA’s chief said that despite the economic outlook improving, operating conditions remain challenging. Credit growth continues to be muted, and margins remain under pressure from higher funding costs.
Recovery from the global financial crisis will take time and there will be challenges along the way, evidenced by the current debt issues in the European Union, Mr Norris noted.
Given this uncertainty, CBA is retaining its conservative business settings, Mr Norris highlighted.
The unaudited result, which was roughly in line with market forecasts, confirms the trends demonstrated by CBA's peers, who have reported half year earnings in recent weeks.
Subscribe