Commonwealth Bank profit rises despite home loan applications fall

Summarised from 2 outlets · 3 reports · Updated 10 Nov, 22:38 · Archive

Commonwealth Bank of Australia reported an eight per cent rise in quarterly profit to $2.8 billion, whilst home loan applications fell 16 per cent.

Commonwealth Bank of Australia reported a first-quarter net profit of $2.8 billion, up eight per cent on the previous corresponding period, despite a 16 per cent fall in home loan applications during the three months ended September 30.

Home loan arrears of 90 days or more rose by seven basis points to 0.8 per cent, reflecting cost-of-living pressures. Personal loan arrears improved to 1.66 per cent, although ongoing pressures remained evident, while credit card arrears were flat at 0.73 per cent. Chief executive Matt Comyn said higher inflation and interest rates continue to place uneven pressure on household incomes and business activity.

The bank holds about a 25 per cent market share with around 1.9 million home loan accounts. During the quarter, the bank booked a loan impairment expense of $300 million linked to troublesome debts and increased collective provisions by $105 million. The bank said credit quality remains sound, with collective provision coverage at 1.35 per cent of credit risk weighted assets.

How it is being reported

• Big bank's profit up despite home loan applications dipThe nation's biggest home loan provider has seen a small uptick in mortgage arrears and a fall in new applications, after posting a rise in quarterly profit.Perth Now · 10 Nov, 22:10
• Big bank's profit up despite home loan applications dipThe nation's biggest home loan provider has seen a small uptick in mortgage arrears and a fall in new applications, after posting a rise in quarterly profit.The West Australian · 10 Nov, 22:10
• Big bank's profit up despite home loan applications dipThe nation's biggest home loan provider has seen a small uptick in mortgage arrears and a fall in new applications, after posting a rise in quarterly profit.Perth Now · 10 Nov, 22:10

In this story: Commonwealth Bank of Australia · Matt Comyn · Australia

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