Commonwealth Bank notched up profits of about $2.4 billion in the three months to March, which was flat compared with previous quarters, as loan growth helped the bank offset a squeeze on its profit margins.
In a trading update on Thursday, CBA said unaudited cash earnings in the three months to March were in line with the quarterly average for the December half.
While CBA’s operating income from charging interest and fees slipped 1 per cent, the lender’s operating expenses fell by a larger 2 per cent, and the bank also reported solid growth in loans and deposits.
CBA, the country’s biggest bank, said home loans grew by $6.9 billion, household deposits jumped $8.5 billion, and business lending lifted by $3 billion.
Chief executive Matt Comyn said the bank had executed its strategy of focusing on its core retail and business banking businesses in the quarter, and pointed to the growth across its portfolio.
“Continued growth in household deposits, home loans, business lending and business deposits was a feature of the quarter. The Group maintained strong balance sheet settings and paid $3 billion in half-year dividends to shareholders,” Comyn said.
“Looking ahead, we are well positioned to support business investment to build Australia’s future economy. Through disciplined execution of our strategic agenda, we will continue to deliver for our customers, communities and shareholders as we build tomorrow’s bank today.”
Quarterly reports have limited detail, but markets were expecting a quarterly result of about $2.1 billion, according to previous note from investment house Jarden.