The Commonwealth Bank of Australia
(ASX:CBA) has reported unaudited cash earnings for the September quarter of $1.4 billion supported by good income growth and cost management.
The impairment expense charge for the three months to September 30 was approximately $700 million, with the bank saying credit quality trends are generally moving in line with expectations.
The bank says total impaired assets increased slightly to 88 basis points of gross loans.
The Commonwealth Bank’s Tier 1 capital ratio strengthened to 8.70 per cent while liquid asset balances were maintained at approximately $87 billion.
CEO Ralph Norris says the operating environment remains a challenging one. Average funding costs are increasing, credit growth has slowed and competition remains strong.
Mr Norris says against this backdrop the group continues to perform well, saying that the combination of good business momentum, continued progress on the company’s strategic agenda and conservative business settings means that the bank remains well-placed to meet the challenging operating environment from a position of relative strength.
The Commonwealth Bank’s 2009 net profit dipped slightly from its result the year before.
