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.
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.