CBA has no need for extra capital

Commonwealth Bank chief executive Ralph Norris told a Macquarie Bank conference yesterday that the bank's capital position was "very strong", said that it was "at the upper end of the target range" and said the bank was "well-placed compared to the bank's peer group".

He said there were "no current plans or need to raise capital".

ANZ and Suncorp are two banks that have recently raised capital.

Norris said the bank completed its wholesale funding program for the 2008 financial year in mid April.

He said the bank held one third more in liquid assets than required under the bank's usual policies (with $39 billion in liquid assets overall).

Norris said he expected the dislocation in credit markets to continue to the last quarter of 2008.

He said loan arrears for the March 2008 quarter were "consistent with seasonal trends" (that is, rising as they tend to at Easter) and that there were "few signs of stress in unsecured portfolios".