Commonwealth Bank of Australia posts flat Q1 cash profit as margins tighten

Sydney

COMMONWEALTH Bank of Australia (CBA), the country's biggest bank by market value, on Tuesday reported flat first-quarter unaudited cash earnings of A$2.4 billion (S$2.6 billion) as margins tightened because of higher funding costs.

Australian bank returns have been under pressure from higher wholesale funding and deposit costs, as well as regulatory changes requiring them to hold more capital against their mortgage books to provide a more level playing field for smaller banks.