Commonwealth Bank of Australia Posts 3Q Net Profit of A$2.4 Billion

By Alice Uribe

SYDNEY--Commonwealth Bank of Australia posted a rise in third-quarter profit driven by lower loan impairment charges, strong home loan funding volumes and growth in business lending.

The bank, Australia's biggest by market value and the country's largest mortgage lender, reported an unaudited net profit of 2.4 billion Australian dollars (US$1.88 billion) for the three months through March. No comparable figure was released, but it represents an increase of about 28% from the A$1.3 billion unaudited profit reported a year ago.

Cash earnings--the measure followed by analysts that strips out items including hedging volatility and losses or gains on acquisitions and asset sales--totalled A$2.4 billion. The bank said it was up 24% on the quarterly average of the prior six months.

CBA reported a common equity tier 1 ratio of 12.7%, up 10 basis points in the quarter after payment of the interim dividend.

Write to Alice Uribe at [e-mail]

(END) Dow Jones Newswires

05-11-21 1837ET