Commonwealth Bank anticipates modest profit growth

Company News

by Glenn Dyer

The Commonwealth Bank (ASX:CBA) is expecting little growth in its full-year profit for the year ending on June 30th after revealing a dip in third-quarter earnings on Thursday.

The bank attributed the 5% drop in unaudited cash earnings over the three months to March, amounting to $2.4 billion, to "slightly lower margins."

Although slightly better than forecasts, the CBA noted that higher interest rates contributed to a rise in loan arrears during the quarter.

However, the country’s largest bank emphasized that its balance sheet and economic fundamentals remain sound.

"Unemployment remains low, supported by business and government investment, and elevated terms of trade," said CBA CEO Matt Comyn in the update.

The bank reported a 3% dip in cash earnings for the six months ending December.

Additionally, the bank disclosed that it had executed $250 million of the $1 billion share buyback announced earlier this year.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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