CBA's capital, funding and liquidity
The second part of the Commonwealth Bank group's third quarter trading result, released yesterday to allow investors a degree of comparison across all major banks, disclosed that CBA's Basel III Common Equity Tier 1 (CET1) ratio was 10.0 per cent as at 31 March 2016. This was the ratio calculated in line with APRA guidelines, an increase of more than 50 basis points over December 2015 - that is, after excluding the impact of the 2016 interim dividend (which included the issuance of shares as part of CBA's dividend reinvestment plan).This increase was primarily driven by capital generated from earnings. The group's Basel III Internationally Comparable CET1 ratio as at 31 March 2016 was 13.9 per cent. The group's Leverage Ratio was 4.9 per cent on an APRA basis and 5.5 per cent on an internationally comparable basis.Funding and liquidity positions remained strong, with customer deposit funding at 64 per cent and the average tenor of the wholesale funding portfolio at 4.2 years. Liquid assets totalled $141 billion with the liquidity coverage ratio standing at 130 per cent. The group disclosed that it issued $13 billion of long term funding in the quarter.