Commonwealth Bank reported “slightly lower margins” over the past quarter, which reduced profits to $2.4 billion for the three months to March 31, as its chief executive, Matt Comyn, said competitive pressures are improving.

The country’s largest bank said higher interest rates had caused a rise in the number of customers who are late on loan repayments, but overall, its balance sheet and economic fundamentals remain sound. “Unemployment remains low, supported by business and government investment and elevated terms of trade,” Mr Comyn said.