Commonwealth Bank of Australia has lifted its third quarter cash profit almost 16 per cent to $2.2 billion.
Australia’s largest home lender said the result was driven by strong revenue growth and cost control during the quarter.
The bank’s net profit was $2.3 billion for the three months to March 31, up 21 per cent compared to a year ago.
CBA said it recorded moderate mortgage growth during the quarter as lower interest rates fuelled more activity but resulted in borrowers paying back more.
“Lower interest rates supported strong growth in new business activity compared to the prior year, however this was balanced by higher levels of loan repayments,” the bank said in a statement on Wednesday.
Household deposit growth remained strong, it said.
“However, commercial lending remained subdued, while the bank’s group net interest margin, a measure of its profitability, declined during the quarter.”
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The bank’s reported impaired assets are unchanged at $3.9 billion.
“Strong liquidity and funding positions were maintained, with liquid assets standing at $144 billion and customer deposit funding at 63 per cent.”
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