CBA’s 3Q17 result backed by cost discipline
The Commonwealth Bank (CBA) has reported unaudited statutory net profit of approximately $2.6 billion in the third quarter, 2017, thanks to its continued cost discipline, income growth and sound credit quality.
At the same time, unaudited cash earnings stood at $2.4 billion and the bank saw a net interest income growth, supported by growth in key markets and offsetting margin pressures.
The bank said its home lending segment also experienced a continued growth which was additionally underpinned by strong proprietary channel performance.
According to the group, its lending portfolios remained sound, with loan impairment expense (LIE) of$202 million in the quarter equated to 11 basis points of gross loans and acceptances.
At the same time, its business lending growth overall remained subdued, with strongest growth in business and private banking.
As far as the bank’s wealth management segment was concerned, the average assets under management and funds under administration rose by six and seven per cent, respectively, reflecting stronger investment markets and partly offset by exchange rate movements.
Group net interest margin for the quarter was slightly lower due to higher average liquids and competition effects while other banking income was stable due to higher commissions and lending fees offset by lower trading income.
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