CBA crabwalks through March quarter
A third quarter cash profit for Commonwealth Bank that is dead in line with its profit for the first quarter and around A$100 million less than its second quarter lends support to bearish views for the sector.CBA put its cash earnings at $2.4 billion for the March 2017 quarter in a sparse trading update yesterday. On the bright side, credit quality keeps getting better, with strife among businesses reduced.CBA said the bad debt charge for the quarter was $202 million and equal to 11 basis points of gross loans, down six basis points over six months.The corporate charge "was substantially lower in the quarter" but not specified. Troublesome and impaired assets "were slightly lower at $6.7 billion, with broadly stable outcomes across most sectors. "Apartment development exposures reduced in the quarter."In the home lending portfolio, "investment lending reduced as a proportion of total new lending … and new interest only lending is being closely managed, consistent with regulatory guidance," the bank said.