Commonwealth Bank (ASX:CBA) has posted a 13% increase in March quarter cash profit, and flagged an expected improvement in operational conditions through the rest of the year.
The company reported profit for the quarter of $1.7 billion, compared to $1.5 billion in the same period a year ago.
Commonwealth Bank said its retail banking operations performed well even as demand for credit remained subdued.
Business confidence levels also remained fragile, although demand for credit in the SME market showed signs of improving, the bank said.
As a result of these factors, CBA has kept its loan impairment provision overlays unchanged at $1.2 billion.
Commonwealth Bank CEO Ralph Norris said that the fragile confidence has led to “subdued spending patterns and muted system credit growth,” and that the residual impacts of the GFC are still being felt overseas.
But he said the company expects “a gradual improvement in operating conditions throughout calendar 2011, as the economic recovery strengthens and system credit growth rebounds.”
CBA shares grew 0.61% in Wednesday's trading to $52.520.