The Commonwealth Bank of Australia
(ASX:CBA) says unaudited cash earnings, the banks preferred measure of profitability, for the March quarter came to $1.5 billion.
In a trading update the bank says it experienced good volume growth in key markets during the period.
For the three months to March 31, 2010 impairment expenses came to around $500 million.
CEO Ralph Norris says whilst the economic outlook has improved over the past year, operating conditions remain challenging.
Mr Norris says credit growth remains muted, and margins continue to come under pressure from higher average funding costs and strong price competition.
Whilst the company has clearly passed the bad debt cycle, Mr Norris says, key credit quality indicators remain at elevated levels and the bank continues to expect gradual, rather than dramatic improvement.
Mr Norris says short term risks and uncertainties remain and recovery from the global financial crisis will take time, given this uncertainty the bank is retaining its conservative business settings, with capital, provisioning, funding and liquidity levels all remaining very strong.
The Commonwealth Bank earned $4.7 billion in fiscal 2009.
