The Commonwealth Bank has recorded a $1.7 billion profit for the three months to March, although warns the outlook for the global economy still remains uncertain.
The company’s cash earnings in the quarter were $1.75 billion.
Chief executive Ian Narev said funding costs were higher in the third quarter, and had a negative impact on the net interest margin.
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
“Conditions in retail banking remained challenging, highlighted by elevated wholesale funding costs, competitive deposit pricing and subdued credit demand,” the bank said in a statement.
Business lending was also weak, the company said, although business in the wealth management division continued to increase.
This article first appeared on SmartCompany.