Commonwealth Bank
(ASX:CBA) has released its September quarter trading update. During that period, its cash earnings and statutory net profit was $2.4 billion.
CBA says it was affected by the low interest rate environment, a strengthening Aussie Dollar and higher insurance claims – therefore, impacting its operating income growth.
In terms of credit quality, the bank says its Loan Impairment Expense was $322 million for the quarter. Bad debt from consumers was primarily due to the mining downturn seen in QLD and WA.
Australia's largest bank also says it maintains “prudent levels of provisioning” – with total provisions at $3.8 billion.
Commonwealth Bank posted a net profit of $9.25 billion at 30 June 2016.
