First Impression: Commonwealth Bank-CBA- FY16 Result

Good outcome, ahead of our numbers and with cash NPAT in line with consensus and NIM outcome better than expected, down only 2bp. Costs flat over the half, positive “Jaws” based on strong revenue growth of 5%. Asset quality remains sound, GIAs flat and 90 days past due lower. CET1 very strong at 10.6% due to organic capital growth (9.6% pro-forma and ahead of the pack), and retail funding continues to improve. Buffers all in the right direction. Overall, a respectable outcome given challenges from all fronts.