CBA Reports Lower 3Q Profit as Margins Weaken

By Alice Uribe

SYDNEY--Commonwealth Bank of Australia posted a fall in third-quarter profit, reporting slightly lower margins as competition remains in the country's retail banking sector.

The bank, Australia's biggest by market value and the country's largest mortgage lender, reported an unaudited statutory net profit of 2.4 billion Australian dollars (US$1.58 billion) for the three months through March.

Cash earnings--the measure followed by analysts that strips out items including hedging volatility and losses or gains on acquisitions and asset sales--totaled A$2.4 billion. This was down 3% on the quarterly average of the first half of the 2024 fiscal year, and down 5% on the same quarter a year ago.

CBA reported a common equity tier 1 (level 2) ratio of 11.9%, citing a A$7.7 billion surplus to the regulator's minimum requirement.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

May 08, 2024 18:27 ET (22:27 GMT)

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