Commonwealth Bank Profit Increases

Commonwealth Bank announced that its first-quarter profit increased six percent, thanks to cost controls and rise in trading income.

The bank’s first-quarter cash profit also rose to $1.85 billion despite the bank facing challenges in increased funding costs and drop in demands for loans. Its unaudited cash profit of $1.85 billion is higher compared to last year’s $1.75 billion.

CBA’s stock has also increased by about 17 percent this year.

The bank said its growth is because of conservative business strategies. The bank is on also on track to reach its full-year net profit of some $7.2 billion. Just like its unaudited cash profit, its full-year net profit for the year is higher compared to last year’s figure.

The bank also said that its retail banking business has been doing well from June to September 2012. Growth in deposit rates, improved lending margins, and cost discipline have made this improvement possible.

Although its business banking was affected by the low demands for loans, Commonwealth Bank said its growth was still ahead of industry average.

The bank also expressed confidence that its loan portfolio business continues to stay strong.