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Commonwealth Bank (ASX:CBA) posts flat $2.4b profit as loan growth offsets margin pressures

ASX 200, ASX News
ASX:CBA      MCAP $192.8B
12 May 2022 09:41 (AEST)

Source: CBA

Commonwealth Bank (CBA) has posted a $2.4 billion profit for the March quarter, which is largely in line with the previous quarters of this year, as loan growth helped offset continued margin pressures.

Australia’s biggest bank said the unaudited profit result was flat on the quarterly average for the first six months of the 2022 financial year.

CBA’s quarterly household deposits grew by $8.5 billion compared to the December quarter, while home loans grew by $6.9 billion, business loans jumped by $3.5 billion, and business despots increased by $2.2 billion.

Further, while CBA’s quarterly income dipped by one per cent, this was offset by a 2 per cent decrease in expenses.

CEO Matt Comyn said the company’s core banking franchises delivered volume growth, “sound” portfolio credit, and ongoing support for flood- and bushfire-affected customers over the March quarter.

“The group maintained strong balance sheet settings and paid $3 billion in half-year dividends to shareholders,” Mr Comyn said.

“Looking ahead, we are well-positioned to support business investment to build Australia’s future economy. Through disciplined execution of our strategic agenda, we will continue to deliver for our customers, communities and shareholders as we build tomorrow’s bank today.”

He added that CBA will conduct its planned $2 billion share buyback across the remainder of 2022, with regulatory approval landed last week from the China Banking and Insurance Regulatory Commission for a partial sale of CBA shares to the Chinese Bank of Hangzhou.

While CBA’s non-interest earnings propped up its quarterly financial result, the bank said net interest income fell 2 per cent in light of lower interest margins. The bank said strong price competition also impacted margins.

Shares in Commonwealth Bank last traded at $101.51 on Wednesday, May 11.

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