Shares in Australia’s biggest bank, Commonwealth Bank of Australia (ASX: CBA), fell after it announced a flat profit for the first quarter of the 2024/25 financial year (1Q25).
CBA said unaudited cash net profit after tax (NPAT) was A$2.5 billion in the three months to 30 September, which was flat when compared with the prior corresponding period.
At 12:15 pm (AEDT) CBA shares were trading at $148.29, down $1.96 (1.3%) after trading between $147.65 and $149.23, capitalising the largest of Australia’s Big four Banks at $251.5 billion and also making it Australia’s largest ASX-listed company.
Compared with the quarterly average of the second half of 2023/24 (2H24), CBA said cash NPAT increased 5%.
Operating income rose 3.5% and operating expenses edged 1% higher versus the quarterly average while operating performance (operating income less operating expenses) was up 1% on the prior corresponding period.
The operating income increase was supported by improved growth momentum from home lending and household deposits, and the business bank made $2.1 billion more in loans and lifted business transaction accounts by around 29,000 to 1.27 million+.
CBA increased home loans by more than $8.6 billion with a focus on retaining customers and improving the acquisition of new customers in a competitive market, and household deposits grew $14.9 billion in the quarter, in line with the market.
Chief Executive Officer Matt Comyn said many Australians were still challenged by cost of living pressures as the pace of the reduction in inflation slowed.
He said the bank’s priorities remained supporting customers, investing in its franchise and providing strength and stability for the Australian economy.
“We remain optimistic on the overall outlook and the Australian economy remains fundamentally sound,” Comyn said in the 1Q25 trading Update.
CBA’s balance sheet strength and solid financial performance supported the payment of $4.2 billion in dividends in the quarter to around 830,000 direct shareholders and more than 13 million Australians through their superannuation.
It also purchased over $750 million of shares in the quarter to satisfy the 2H24 Dividend Reinvestment Plan.