CBA reports $2.6b 3rd quarter NPAT

Mike Taylor

Managing Editor/Publisher, Financial Newswire

9 May 2023

The Commonwealth Bank has reported a solid third quarter with unaudited statutory net profit after tax of $2.6 billion despite flat income.

Providing its quarterly trading update to the Australian Securities Exchange (ASX), the CBA said that operating income had been flat in the quarter, with net interest income down 2% offset by higher non-interest income.

It pointed to lower net interest margins being owed to continued competitive pressure in home loan pricing and customers switching to higher yielding deposits.

The bank noted that many of its customers were feeling the strain of higher interest rates and the rising cost of living but said that it remained committed to supporting customers through the challenges.

“As higher interest rates impact the Australian economy in the period ahead, we expect economic growth to continue to moderate,” the CBA said. “Despite the challenging global economic outlook, Australia is relatedly well positioned given the strength of our banking system, the economic tailwinds from a recovery in population growth and relatively high commodity prices.”