Australian Stock News Commonwealth Bank of Australia (CBA)

Commonwealth Bank of Australia (CBA) is Australia’s largest bank and the second largest listed company in the Australian stock market.

Its operations span from home loans, to wealth management, to brokerage operations.

Recently, CBA advised that its cash earnings for the March 2010 quarter totalled approximately $1.5 billion.

The result was driven by solid volume growth and disciplined cost control, although it was impacted by around $500 million in impairment expenses.

The result slightly disappointed the market, and CBA cautioned that the outlook for credit growth remained muted whilst higher funding costs threatened to crimp its margins.

Separately, a $400 million class action was launched against the major banks, in relation to dishonour fees and late payments deducted from customer accounts over the last six years.

The profit announcement and class action news saw CBA shares decline 1% on that day despite the stock market putting on a half a percent gain.