Commonwealth Bank of Australia
(ASX:CBA) has reported a cash profit of $1.6 billion in the three months ended 30 September.
It is an increase compared to the $1.4 billion reported for the same period in the previous year.
The bank said margins continued to be under pressure as higher funding costs hurt.
It also said loan demand was muted and operating conditions remained challenging as both business and consumer credit growth was slow.
CBA recently experienced political backlash for being the first bank to raise mortgage rates in excess of the central bank’s rate hike.
CBA raised its rates by 45 basis points, well above the Reserve Bank’s 25 basis points increase.
For the year ended 30 June 2010, CBA booked a net profit of $5.7 billion.
