AUS
NZ
UK
CA
USA
IND
Highlights:
- Commonwealth Bank of Australia delivered cash NPAT of AU$2.5 billion during the first quarter of FY23.
- The group’s CET1 (level 2) ratio was 11.1% as of 30 September 2022.
- The group is optimistic about its medium to long-term outlook.
Major Australian bank Commonwealth Bank of Australia (ASX:CBA) on Tuesday (15 November 2022) reported a multi-billion-dollar profit during the first quarter of the financial year 2023 (1QFY23). Commonwealth Bank recorded a cash NPAT of circa AU$2.5 billion during the quarter.
CBA shares were trading 1.02% higher at AU$106.19 per share at 1:37 PM AEDT. Including today’s share price movement, the shares have increased by 8.24% in a month and 3.57% on a year-to-date basis. In the past one year, the share price has dropped by 1.70%.
Meanwhile, the benchmark index, ASX 200 Financials (INDEXASX:XFJ) was up 0.23% to 6,497.70 points. S&P/ASX 200 (INDEXASX:XJO) was down 0.21% to 7,131.80 points around the same time.
Key highlights of CBA’s quarterly performance
- The company recorded an unaudited statutory NPAT of around AU$2.7 billion.
- Unaudited cash NPAT increased by 2% to AU$2.5 billion (all comparisons are made with the average of the two quarters of the second half of FY22).
- Income increased by 9% during the quarter, driven by increased volume growth and margins.
- Operating performance surged by 16% over the first quarter of FY22.
- Non-interest income fell by 17% due to an increase in flood claims, lower net profits from Chinese bank investments and unfavorable derivative valuation adjustments.
- Operating income grew by 9%.
- Customer deposit funding grew by 75% during the quarter.
- The group’s CET1 (level 2) ratio was 11.1% as of 30 September 2022, which is above the existing regulatory requirements.
Management Commentary
Matt Comyn, chief executive officer, CBA commented on the development,
Comyn added that the group is optimistic about the medium to long term outlook despite the interest rate pressure and increased cost of living.
