Feb 11 (Reuters) – Commonwealth Bank of Australia reported a record first-half cash earnings on Wednesday, propped up by robust growth in lending and deposit volumes, although margins were pressured due to tight competition in a low-interest-rate environment. Australia’s biggest bank by market value reported a 3.7% growth in home lending volumes, while business lending […]
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Australian bank CBA posts record first-half cash earnings on lending growth
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Feb 11 (Reuters) – Commonwealth Bank of Australia reported a record first-half cash earnings on Wednesday, propped up by robust growth in lending and deposit volumes, although margins were pressured due to tight competition in a low-interest-rate environment.
Australia’s biggest bank by market value reported a 3.7% growth in home lending volumes, while business lending volumes grew 6.0%, outpacing system growth on both counts. Household deposits rose 7.5%, also beating the system.
Its net interest margin, the difference between lending and deposit rates, fell 4 basis points to 2.04%, from a year earlier.
CBA reported cash net profit after tax of A$5.45 billion ($3.86 billion) for the six months ended December 31, compared with A$5.13 billion a year earlier.
That beat the Visible Alpha consensus estimate of A$5.19 billion.
It declared an interim dividend of A$2.35 per share, compared with A$2.25 last year.
($1 = 1.4132 Australian dollars)
(Reporting by Sameer Manekar and Roshan Thomas in Bengaluru; Editing by Sriraj Kalluvila)