Commonwealth Bank reports $2.8B Q1 profit
By Jon CuthbertKey points
- Commonwealth Bank delivered an unaudited cash profit of approximately $2.8 billion for the first quarter.
- Quarterly cash profit rose 8% from a year earlier, while the lender's share price traded flat at $168.99.
- The group stated that volume growth and disciplined execution supported performance amid ongoing cost-of-living pressures.
Commonwealth Bank of Australia (ASX:CBA) delivered an unaudited cash profit of approximately $2.8 billion, driven by expanding loan volumes.
The result marks an 8% increase compared to last year, while remaining flat against the recent second-half quarterly average.
“We delivered strong volume growth across our core businesses while the underlying margin was broadly stable. Business lending growth was well-diversified across a range of sectors, supported by the strength of our proprietary customer relationships and continued business investment demand,” said Commonwealth Bank CEO Matt Comyn.
Operating expenses rose 3% amid wage inflation, while the lender booked $300 million in loan impairment expenses.
Operating income was up 3% in the quarter, with higher net interest income partly offset by lower other operating income.
Total provisions were flat at $6.5 billion, with higher collective provisions primarily reflecting the impact of lower house prices on the mortgage portfolio, offset by lower individual provisions for corporate exposures.
Following the announcement the Commonwealth Bank share price was unchanged at $168.99.
The bank maintained balance sheet strength by raising $14 billion in new long-term wholesale funding this financial year.
Commonwealth Bank also paid $4.5 billion in dividends to shareholders while maintaining an 11.5% capital ratio.
