CommBank rides the wave of a home lending boom
A boom in home and business lending has helped the Commonwealth Bank to a $2.4 billion third-quarter profit, a rise of 24 per cent against the same time last year.
Business lending grew by $3 billion, or 8 per cent, and home lending by $6.7 billion, or 5.3 per cent. The bank’s position was also helped by an increase in deposits of $4 billion.
It said its stronger net profit reflected an improvement in the economy and outlook.
Significantly, the bank’s home lending was above system growth.
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Chief executive Matt Comyn said the bank was well placed and credit quality remained sound as a vast majority of the bank’s customers transitioned from the temporary loan repayment deferral scheme that ended in March. About 158,000 home loans, worth $54 billion, were deferred under the scheme and 81 per cent have returned to normal repayments. About 10 per cent were closed.
“There was a small increase in home loan portfolio arrears in the quarter as the deferral program concluded and further modest increases are expected in coming months,” CBA’s third quarter trading update said.
About 95 per cent of its business customers have returned to regular repayments.
