After delivering a record annual cash profit of $7.8 billion in August, Commonwealth Bank (ASX: CBA) continues to astound after today reporting a $2.1 billion cash profit for the three months to September 30.
The result represents a 13.5% increase on the previous corresponding period, and statutory net profit was also $2.1 billion, up 16% from last year.
Whilst the bank cited a lift in revenues and cost discipline as the major contributing factors that led to the result, its group net interest margin fell away during the quarter due to the low interest rate environment.
Meanwhile, although the low interest rates have spurred an increase in business activity, any gains were balanced out by customers who chose to repay their current debts as opposed to taking out further loans.
The result tops off a solid fortnight of reporting by the banks, after ANZ (ASX: ANZ), NAB (ASX: NAB) and Westpac (ASX: WBC) also reported record annual profits. The banks shares were trading 1.7% higher at $78.30 following the news.
Foolish takeaway
Whilst there are certainly signs that this year could be another very profitable one for the banks, analysts have said that their record profits will be very difficult to maintain or repeat in years to come as interest rates inevitably rise.
