On Thursday, the Commonwealth Bank of Australia released its first quarterly report of unaudited cash profit, which appreciated by 4 percent to $2.4 billion. The statutory profit of the country’s second largest lender by asset for the September quarter was $2.3 billion, compared to the $2.4 billion net profit the previous during the same quarter.

All four major banks of Australia -- CBA, Westpac, Australia and New Zealand Banking Group and National Australia Bank -- are preparing for a slower rate of earning which could be possible due to the ensuing global financial economy as a result of stricter capital regulations and slowing economic growth.

"Bad debts were the key surprise, coming it at 13 basis points vs consensus estimates of 18 basis points," the Reuters quoted Omkar Joshi, investment analyst at Watermark Funds Management, as saying.

The Commonwealth Bank of Australia said that there has been a considerable rise in home lending in the quarter leading up to September. But the numbers for the domestic business lending growth remained at mid-single digits. According to the bank, the September quarter saw a $5.5 billion in troublesome and impaired loans.

The major lending bank, along with other banks, was compelled to raise extra revenue from its investors to prepare themselves against any unprecedented decline in the already staggering economy. CBA held that there was an increase of 70 basis points in its common equity tier-1 ratio at the end of September. In August, the CBA pulled up its cash-profit of a full year by 5 percent to $9.14 billion.

The report indicates a good start for the next financial year even though slow growth is clearly suggested.

Joshi, however, pointed out that ANZ was the only bank among the four major banks to undergo a “significant deterioration” in terms of assets. He added that it is not a sector-wide problem and is only an ANZ-specific issue.

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