CBA report unchanged Q1 profits
(7 November 2016 – Australia) Commonwealth Bank of Australia (CBA) recorded a A$2.4 billion profit in its first quarter, unchanged from the same period last year.
CBA said growth in its income had slowed "slightly" compared with the previous financial year, because of falling interest rates, a strengthening currency and higher insurance claims.
The country's biggest lender also said profit margins had tightened in the quarter.
In a statement to the ASX, CBA said: "Group net interest margin was lower in the quarter due to higher funding costs."
CBA added that the group maintained its market share in key markets, including home loans, household deposits, and business lending.
CBA said impaired loan costs were A$322 million in the quarter, 0.18 percent of total loans, down from 0.19 per cent in the year to 30 June. However, it noted that impaired loans in its core consumer lending business were higher in mining-exposed areas.
CBA's core equity tier 1 capital ratio was 9.4 percent, an increase of 34 basis points after allowing for tougher capital rules that took effect in July, and the payment of its final dividend.
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