ABC posts quarterly profit of $ 2.5 billion as few loans deteriorate

The update of the transactions, which contains limited financial details, indicates that the operating income of the bank grew by 1%, the commissions offsetting the net and flat interest income. Net interest margin, which compares financing costs to what the bank charges for loans, shrank due to higher financing costs and competition in the mortgage market.

The update showed that the bank's mortgage lending portfolio, which accounts for about one in four mortgages in Australia, grew by 3.1% on an annualized basis, which is lower than the growth of 3.6% observed on the market. CBA deposits increased 8.9% on an annualized basis.

The costs of bad loans go down

As all banks receive very few loans, CBA has indicated that its impaired loan expenditures have declined from the previous year, from 0.15% to 0.11% of gross loans.

The "troublesome" loans, which include loans whose customers are late in repayment but are not yet clbadified as "impaired", remained broadly stable during the quarter and the backlog of consumption experienced a "moderate" improvement.

The ABC announced last week the sale of $ 4.1 billion of global badet management Colonial First State, while separating itself from its wealth management business and brokerage business. mortgages.

Mr. Comyn said it was a key step in the bank's plan to simplify its operations and focus on its core retail banking and banking business. ;business.

"We are building a simpler, higher quality bank that is perfectly tailored to the needs of customers in our core markets," said Comyn.

"We simplify our portfolio, our operating model and our processes to improve customer results, efficiency and risk."

Its Tier 1 capital stock (CET1), an important indicator of strength, accounted for 10% of risk-weighted badets. The bank said that once disinvestments, particularly in the areas of wealth management, life insurance and fund management, its CET1 ratio would be 11.2%, which is significantly higher than regulatory requirements.

The ABC holds its annual general meeting in Brisbane on Wednesday. For the bank, this year marks a tumultuous year, with notably a change of managing director, a scathing survey on ABC governance led by the prudential regulatory authority and the royal commission.