Commonwealth Bank has lifted its cash profits to $10.16 billion – in line with expectations – for the full year and reported a net interest margin of 2.05 per cent for the second half, down 5 basis points on the half year.
Margins peaked in late 2022 and will remain under pressure from competition, it said.Commonwealth Bank
Home and personal loans more than 90 days overdue rose but Mr Comyn said the overall quality of lending “has remained sound, with arrears and impairments below long-term averages, supported by a strong labour market as well as savings and repayment buffers.” Yet, when compared to the first half of the financial year, NIMs fell 5 per cent to 2.05 per cent in the second half, and the bank flagged ongoing pressures, including from deposits and higher funding costs in wholesale markets.competition, customer deposit switching and higher wholesale funding costs toMr Comyn said, “with tighter and rapidly changing financial conditions we have taken a prudent approach to managing risks including credit, interest rate, funding and liquidity risks”.
Consensus estimates had predicted Commonwealth Bank to post a record cash profit of around $10.1 billion for the 2023 financial year, despite a more challenging environment for net-interest margins.
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