CBA misses quarterly estimates with $1.5bn profit
The Commonwealth Bank of Australia (CBA) reported unaudited earnings for the March quarter were approximately $1.5 billion following good volume growth. In its trading update released today, the bank reported impairment charges of about $500 million for the quarter.
CEO, Ralph Norris, said operating conditions remain challenging despite the economic outlook progressively improving over the past 12 months.
“Credit growth remains muted, and margins continue to come under pressure from higher average funding costs and strong price competition,” Mr Norris said.
“Whilst we have clearly passed the peak in the bad debt cycle, key credit quality indicators remain at elevated levels and we continue to expect gradual, rather than dramatic improvement.”
Mr Norris concluded by saying short-term risks and uncertainties remain.
“Recovery from the Global Financial Crisis will take time and there will be challenges along the way, evidenced by the current sovereign debt issues in the European Union,” he said.
“Given this uncertainty, the Group is retaining its conservative business settings, with capital, provisioning, funding and liquidity levels all remaining very strong.”
At the close of trade Tuesday, CBA shares were trading at $54.85.
Leave a Reply