Commonwealth Bank's 1Q Profit Falls as Arrears Tick Up
By Alice Uribe
SYDNEY--Commonwealth Bank of Australia reported a drop in first-quarter profit, and said it has seen a small increase in consumer arrears recently amid higher interest rates and inflation.
Australia's largest bank on Tuesday reported an unaudited net profit of 2.50 billion Australian dollars (US$1.59 billion) for the three months through September.
The lender did not disclose a comparable figure, but it was about 7.4% lower than the unaudited A$2.7 billion profit reported a year ago.
Commonwealth Bank reported first-quarter cash earnings, a measure of profitability that strips out items such as the impact of asset sales, of A$2.5 billion. That was flat on the average of the prior two quarters, it said.
Chief Executive Matt Comyn said the company was very aware that many Australians are feeling under pressure in the current environment.
"While some remain well positioned, we recognize that others are finding the higher cost of living very tough," he said. "As a result, we have seen a modest increase in consumer arrears over recent months."
For the first quarter, Commonwealth Bank said home loan arrears had increased to 0.49%, up 2 basis points.
Write to Alice Uribe at alice.uribe@wsj.com
(END) Dow Jones Newswires
November 13, 2023 16:33 ET (21:33 GMT)
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