Indonesian banks too pricey for CBA

David Craig, chief financial officer of Commonwealth Bank, told The Australian that it was unlikely to buy a bank in Indonesia because "they're not for sale" and "certainly not at the price that we're willing to pay for them". 

CBA already owns one bank in Indonesia, reporting loan growth of more than 40 per cent a year.

Craig also told the newspaper that impairments were a "lagging indicator", with current charges indicating bad debts were declining.

"The lending books are in a very good shape," he said.

CBA last week said that in the March 2013 quarter its impairment expense was A$255 million, representing 19 basis points of total loans. The ratio of impairment to loans fell from 22 basis points in the December quarter.

The value of impaired assets and past-due loans also fell.