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CBA posts higher profit for March quarter, jump in bad loan charges

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CBA posts higher profit for March quarter, jump in bad loan charges

reported a marginal gain in profit for the quarter ended March 31, whilereporting a jump in bad loan charges.

Unauditedcash profit for the quarter, excluding one-time items, rose to A$2.3 billionfrom A$2.2 billion reportedfor the prior-year period. Statutory net profit climbed to A$2.4 billion fromA$2.2 billion.

CommonwealthBank of Australia did not provide year-ago profit figures in its latestquarterly results.

Thebank said loan impairment expenses grew to A$427 million in the quarter fromA$256 million reported a year earlier, because of a "small numberexposures" in its institutional loan portfolio, including a largesyndicated loan. Impaired loans and problem assets increased to A$6.3 billionas of March 31 from A$5.9 billion three months earlier and A$6.0 billion ninemonths earlier.

CommonwealthBank of Australia's loans to domestic businesses continued to grow at amid-single-digit percentage on a year-over-year basis, while its householddeposits kept expanding faster than the industrywide pace, the company said.

Thegroup's common equity Tier 1 capital ratio, based on local regulations, was 10%at March 31, rising more than 50 basis points from Dec. 31, 2015, when theinterim dividend is excluded. Based on international standards, the figure cameto 13.9%.

CommonwealthBank of Australia reported a leverage ratio of 4.9% based on local rules and anintentionally comparable ratio of 5.5%.

As of May 6, US$1 wasequivalent to A$1.36.