SMHCBA 'on track to full year EPS growth'Email Print Normal font...

SMH

CBA 'on track to full year EPS growth'
Email Print Normal font Large font April 18, 2007 - 9:49AM


Australia's second largest bank Commonwealth Bank of Australia Ltd says it remains on track to deliver cash earnings per share (EPS) growth that meets or exceeds the average of its peers.

In a third quarter trading update the bank said trading conditions and underlying credit growth remaining favourable.

"The earnings momentum of the first half has been maintained in the third quarter of the group's 2007 financial year," it said.

During the quarter, CBA said trading conditions in its retail bank business had remained relatively strong, supported by steady housing growth and continuing favourable credit quality.

"In Australia, the retail bank continued to target profitable growth in each of its key products," it said.

Home lending balance growth has been in line with market.

In credit cards, recent growth rates had also been in line with market even though the bank continued to avoid zero rate balance transfer offers.

"Retail deposit growth, which has been influenced by normal seasonal factors, has been in line with system with continuing strong inflows into Netbank Saver," it added.

"Consumer credit quality has remained sound."

CBA said there had been some seasonal increase in arrears.

"Loss rates in unsecured lending - which includes credit cards - are trending slightly below expectations," it added.

© 2007 AAP