CBA posts $2.3bn profit for third quarter

CBA posts $2.3bn profit for third quarter

The Commonwealth Bank of Australia has reported an unaudited cash profit of $2.3 billion for the three months to 31 March 2016.

In a 2015-16 third quarter trading update, CBA reported an unaudited cash profit of $2.3 billion and an unaudited statutory net profit of $2.4 billion.

The bank's unaudited cash earnings for the prior corresponding period were $2.2 billion.

In the 31 March 2016 quarter, CBA saw its loan impairment expense climb higher to $427 million, equating to 25 basis points of gross loans and acceptances for the quarter.

CBA's Basel III Common Equity Tier 1 ratio was 13.9 per cent for the third quarter of 2015-16, and the bank's leverage ratio was 4.9 per cent on an APRA basis and 5.5 per cent on an internationally comparable basis.

Wealth management funds under management and administration dropped by 1 per cent and 2 per cent respectively in the quarter.

CBA said this reflected "falling investment markets, subdued net flows and exchange rate movements".

Home lending volume growth was "consistent with recent trends" and domestic lending growth remained at mid-single digit levels for the 12 months to 31 March 2016, said the statement.

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CBA posts $2.3bn profit for third quarter
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