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CBA posts $2.4bn profit in first quarter

By Reporter
 — 1 minute read

The Commonwealth Bank has reported a cash profit of $2.4 billion for the three months to 30 September 2016, along with a slight fall in operating income growth.

CBA's $2.4 billion cash profit for the first quarter comes after the bank announced a $9.2 billion profit for the 2015-16 full year.

The bank also revealed that its operating income growth had fallen below the prior corresponding period, impacted by the low interest rate environment, a strengthening Australian dollar and higher insurance claims.

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Within CBA's wealth division, average assets under management and funds under administration rose by 3 per cent and 2 per cent respectively "driven by stronger investment markets and positive net flows".

The bank's loan impairment expense was $322 million for the September quarter, equating to 18 basis points of gross loans and acceptances – compared to 19 basis points in the prior corresponding period.

CBA's common equity tier 1 (CET1) capital ratio was 9.4 per cent as at 30 September 2016.

"After allowing for the increase in risk weighting for Australian residential mortgages and the impact of the 2016 final dividend ... the CET1 ratio increased by 34 basis points in the quarter, primarily driven by capital generated from earnings," said CBA.

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CBA posts $2.4bn profit in first quarter
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