CBA profits rise to $2.3 billion amid ‘challenging environment’

The Commonwealth Bank has notched up a first quarter profit of $2.3 billion, saying its profit margins would continue to come under pressure from very low interest rates.

In an unaudited trading up for the September quarter, CBA said reported cash earnings of $2.3 billion from its continuing operations, which the bank said was 5 per cent higher, excluding notable items.

Commonwealth Bank chief executive Matt Comyn said the bank faced a “challenging operating environment.”Credit:Alex Ellinghausen

CBA’s net interest income was 3 per cent higher in the quarter, helped by solid growth in mortgage lending, business lending and deposits. The bank’s non-interest income also increased, by 7 per cent, due to asset sales, a lack of insurance claims, and higher sales in its global markets business.

The bank’s operating expenses were 9 per cent lower because high compensation costs were not repeated, while expenses rose 2 per cent, excluding “notable” items.


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