CBA’s quarterly profits double to $2.4b
Commonwealth Bank’s third-quarter profits doubled compared with last year to $2.4 billion, as the banking giant cut provisions for bad debts in response to the improving economy.
In an unaudited trading update on Wednesday, CBA reported a cash profit of $2.4 billion for the March quarter, up from $1.2 billion in the same period last year. CBA said profits increased by 24 per cent compared with its quarterly average during the six months to December.
‘Our disciplined focus on operational excellence was reflected in continued strong operational performance in the March quarter’: Commonwealth Bank chief executive Matt Comyn.Credit:Alex Ellinghausen
Chief executive Matt Comyn said the bank was well placed to support customers as the economy bounced back from the COVID-19-induced shock, and he pointed to strong growth in the bank’s lending. CBA, the country’s largest lender, said it had expanded in home loans, business loans, and deposits at a faster pace than the industry average during the quarter.
“Our disciplined focus on operational excellence was reflected in continued strong operational performance in the March quarter,” Mr Comyn said.
“This was highlighted by strong home loan funding volumes, particularly through our proprietary network, and business lending continuing to grow at greater than three times system levels.”
In a trend that has boosted profits across the industry, CBA said it had cut its credit provisions in response to the improving economy, delivering a $136 million benefit to the bank.
Last week’s half-yearly results from Westpac, National Australia Bank and ANZ Bank also confirmed the country’s banking giants were benefiting from a pick-up in credit growth and lower bad debt charges, as the economy recovers.
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