On Thursday, 12 May, the Commonwealth Bank of Australia (CBA) announced $2.3 billion in net profit after tax.
The bank also reported a “steady” operating performance and volume growth compared to the first half of FY22 with household and business deposits up $8.5 billion and $2.2 billion respectively, home lending up $6.9 billion and business lending up $3 billion.
Despite this, income was down 1 per cent which CBA attributed to “continued margin pressure”, while operating expenses were also down 2 per cent.
CBA also confirmed a CET1 ratio of 11.1 per cent for the March quarter.
“The March quarter underlined the disciplined execution of the group’s strategy, focused on our core banking franchises, which delivered continued volume growth, sound portfolio credit quality and ongoing support for our customers and communities, in particular to those most affected by extreme weather events in many parts of the country including the catastrophic East Coast floods and WA bushfires,” Mr Comyn said.
“Continued growth in household deposits, home loans, business lending and business deposits was a feature of the quarter. The group maintained strong balance sheet settings and paid $3 billion in half-year dividends to shareholders.”
Mr Comyn also confirmed that the previously-announced on-market share buyback of up to $2 billion will be conducted across the remainder of the 2022 calendar year.
“Looking ahead, we are well positioned to support business investment to build Australia’s future economy,” he said.
The March 2022 results come just weeks after CBA chairman Catherine Livingstone AO announced she will retire from the board effective August 2022.
Non-executive director Paul O’Malley will take on the position from 10 August 2022.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
