Commonwealth Bank chief executive Matt Comyn says Australia is in a good position to navigate a risky world economy, as the banking giant’s profits rose to $2.6 billion in the March quarter.

The country’s biggest bank capped off a round of bank updates on Wednesday, when it reported cash net profit after tax in the third quarter rose 6 per cent compared with the same three months a year earlier. The unaudited result was flat compared with the quarterly average for the first half of CBA’s financial year.

Comyn said it had been a “challenging period” for many households and businesses under pressure from the high cost of living, and the bank was providing support to customers who needed it most.

Despite the risks, Comyn said inflation in Australia was declining, and noted government investment was helping to support employment and economic growth.

“There is heightened risk to the global economy from geopolitical and macroeconomic uncertainty which could slow the domestic economy. Australia is in a relatively strong position to navigate the challenges,” Comyn said in a statement.

“Australia remains an attractive place to live and work. Government investment in infrastructure and services is helping to support employment and growth, and underlying inflation is moderating.”

CBA’s operating income rose 1 per cent thanks to lending growth and higher income from trading, while its expenses also grew by 1 per cent in the quarter.

Home loan arrears rose 5 basis points to 0.71 per cent in the quarter, while personal loan arrears lifted by 19 basis points, a move CBA said was largely in line with seasonal trends.

The update follows a flurry of results from CBA’s rivals last week, with lenders pointing to competitive conditions in retail banking, which have pressured margins in the industry. CBA said its net interest margin – which compares funding costs with what the bank charges for loans – was stable once non-recurring earnings were excluded.

More to come

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