Commonwealth Bank saw profit after tax climb to A$2.56 billion last quarter amid deposit and lending growth, though shares dropped 6.1%.
Its cash net profit after tax increased by 2% year-over-year, or by 1% from the quarterly average. Operating income was up 6% to $14.37 billion.
“We have maintained strong balance sheet settings. We remain conservatively positioned for the long term. CET1 remains well above the regulatory minimum,” wrote Commonwealth Bank CEO Matt Comyn.
“We are closely watching the increased competitive intensity and implications across the financial system, and we will continue to adjust our settings as appropriate. The Australian economy remains resilient.”
CBA said its net interest margin declined slightly due to the "the mix effects of strong growth in lower yielding liquid assets and institutional repos".
The bank’s CET1 ratio was 11.8%, and increased by 33 basis points. It credited this to higher capital generated from earnings.
Deposit funding was 79% of its total funding, growing from 78% in the June quarter. Retail deposits saw the largest increase, rising from $613 billion to $630 billion.
Business lending volumes were up 10.4% year-over-year. Household deposits climbed by 9.5%, and home loans increased by 6.1%.
Operating expenses were $6.62 billion, growing by 11%.
Commonwealth Bank’s (ASX: CBA) share price was $164.20 at time of writing, down from its previous close at $174.92. Its market capitalisation is $274.53 billion.
