Commonwealth Bank reports big profits, driven by lending

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    Commonwealth Bank is the last of the big four to release results this month – and for shareholders it’s been a worthwhile wait. Australia’s biggest bank has reported a cash profit of $2.4 billion for its third quarter – nearly double the amount it recorded in the same period last year.

    And while shareholders may be pleased, NAB CEO Ross McEwan will be looking over his shoulder. CBA makes no secret of its plans to take the number one business lending spot from NAB, and over the last quarter, CBA said its business lending volume had grown by $3 billion or 8.1% – over three times the market growth rate. CEO Matt Comyn is also confident that business lending is going to grow – powered by yesterday’s budget.

    CBA reported that its home lending had grown by $6.7 billion, 10% faster growth than the other big banks, and 5.3% up on its previous third quarter results.

    Like NAB, CBA has reported an increase in the number of borrowers who are now more than 90 days overdue. The number jumped around 9%, from 0.57% to 0.62% – and CBA confirmed that it was expecting that number to continue to rise.

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    Original Article