In a trading update to the market on Wednesday, Commonwealth Bank announced an estimated cash net profit after tax of $1.8 billion, down 16 per cent on the same period last year.
The bank said it had reduced its expenses over the quarter but was expecting further customer remediation costs in the second half of the financial year.
CBA said continuing repayment deferrals and government support had “insulated” any issues in its loan book but that it had strengthened its provision coverage to allow for further impacts of the pandemic in future.
The bank said it had seen its household deposits grow by $15.8 billion, home lending by $5.6 billion and business lending by $1.4 billion over the quarter.
Despite the declining profit, CBA chief executive Matt Comyn said “disciplined execution of our strategy” was helping the bank avoid worse outcomes.
“Our strong balance sheet, focus on operational excellence and the dedication and commitment of our people ensure we remain well placed to support our customers and the wider community through the ongoing challenges of COVID-19,” Mr Comyn said.
