Commonwealth Bank records $1.7 billion quarterly profit

The Commonwealth Bank has recorded a $1.7 billion profit for the three months to March, although warns the outlook for the global economy still remains uncertain.

The company’s cash earnings in the quarter were $1.75 billion.

Chief executive Ian Narev said funding costs were higher in the third quarter, and had a negative impact on the net interest margin.

“Conditions in retail banking remained challenging, highlighted by elevated wholesale funding costs, competitive deposit pricing and subdued credit demand,” the bank said in a statement.

Business lending was also weak, the company said, although business in the wealth management division continued to increase.

This article first appeared on SmartCompany.