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UPDATE 1-Australia's CBA doubles cash profit on easing loan impairments

05/11/2021 18:29
UPDATE 1-Australia's CBA doubles cash profit on easing loan impairments

Adds details on results, background

- Commonwealth Bank of Australia CBA.AX said on Wednesday its third-quarter cash profit doubled as a rapid economic recovery spurred robust lending and enabled the country's largest bank to reverse some bad debt provisions made during the pandemic.

Australia's control over the pandemic, near-zero interest rates and government spending has allowed its banks to recover quicker than their global peers and move funds set aside for potential COVID-19 losses back into profits.

CBA, which follows a different reporting calendar than its rivals, said it booked a loan impairment benefit of A$136 million in the quarter, compared with a A$1.6 billion loan impairment expense last year.

It lowered its total credit provisions to A$6.5 billion at the end of March, from A$6.8 billion at the end of December.

Cash net profit after tax from continuing operations at the bank rose to A$2.4 billion ($1.88 billion) for the three months ended March, from about A$1.2 billion a year earlier. nAZN015R9H

The Sydney-based lender said its troublesome and impaired assets were A$7.8 billion at the end of March, lower than the A$8.2 billion it had on its books three months earlier.

($1 = 1.2755 Australian dollars)

(Reporting by Shashwat Awasthi in Bengaluru; Editing by Shailesh Kuber)

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