Conservative management and modest credit growth - CBA
(16 May 2013 – Australia) Strong reporting from Australia’s banks has continued with Commonwealth Bank of Australia (CBA) reporting a third-quarter profit of A$1.9 billion.
The result for the three months to 31 March was up from A$1.75 billion in the previous corresponding period, bringing the bank’s profits so far this financial year to A$5.7 billion.
Last year’s full-year cash profit was A$7.1 billion, and CBA looks set to surpass that figure this year.
In a statement to the stock exchange on Wednesday, the bank said its revenue growth continued to reflect a combination of conservative management and modest growth in the credit market.
The bank said its margin gains were "partly offset by higher funding costs", but did pass on the Reserve Bank of Australia’s latest rate cut of 25 basis points in full this month.
The bank reported growth in household deposits but said deposit margins remained under pressure in a competitive market. Deposit funding now made up 65 percent of its funding.
The bank’s announcement follows a string of record half-year results for the other big four banks in the past month.