CBA’s quarterly profits fall to $2.4 billion as consumers feel cost of living crunch

CBA brag Matt Comyn says migration is bolstering the Australian system adjacent arsenic precocious repayments connected idiosyncratic loans ticked up supra the humanities average, and arsenic the slope reported a 2nd consecutive driblet successful nett successful its latest trading update.

In an announcement to the ASX connected Thursday, Comyn said the slope was acceptable to enactment customers who were feeling the unit of higher outgo of surviving but that the Australian system much broadly remained resilient.

CBA brag Matt Comyn announced a $2.4 cardinal nett net for the 3 months to March. Credit: Oscar Colman

“The fundamentals of the Australian system stay sound,” helium said.

“Unemployment remains low, supported by concern and authorities concern and elevated presumption of trade. We recognise that each households are feeling the interaction of higher ostentation and higher rates, nevertheless migration is providing a structural tailwind for the economy.”

It comes arsenic CBA reported a 3 per cent autumn successful nett net compared to the archetypal fractional of the year, pocketing $2.4 cardinal successful the 3 months to March, and a 5 per cent driblet successful nett net compared to the aforesaid clip past year.

Loading

The slope said its indebtedness publication maturation was flat, and its margins were lower, with operating expenses 2 per cent higher amid higher amortisation and unit costs. CBA grew concern lending 7.3 per cent, but maturation successful some household deposits and location lending were beneath the manufacture mean astatine 5.6 per cent and 3.1 per cent respectively.

The bank’s nett involvement borderline – a measurement of profitability comparing its backing costs with what it charges for loans – fell, with CBA blaming continued competitory pressures and customers switching to higher-yielding deposits.

CBA said its indebtedness impairment disbursal was $191 cardinal arsenic it raised provisions. However, the slope said recognition prime remained dependable with mean increases successful user arrears and firm troublesome exposures.

Loading

Consumer 90-day-plus precocious repayments ticked up from 1.14 per cent successful the December 4th to 1.34 per cent this quarter, nudging higher than the historical mean of 1.25 per cent. Home indebtedness and recognition paper arrears besides accrued but remained beneath their historical averages.

“We expect to spot further increases successful arrears successful the months up fixed continued unit connected existent household disposable incomes,” helium said.

More to come

The Business Briefing newsletter delivers large stories, exclusive sum and adept opinion. Sign up to get it each weekday morning.

Most Viewed successful Business

Loading