Commonwealth Bank says the economy is set to slow as the impact of higher rates bites, with the first signs of arrears ticking up in consumer lending.
Commonwealth Bank of Australia said its third-quarter profit was flat compared with the first half but was up 10 per cent on a year earlier, bolstering hopes that bank margins are stabilising., CBA’s unaudited third-quarter net profit after tax hit $2.6 billion.
CBA continued to take share in the ultra-competitive business lending arena, growing at 1.3 times system registering 12 per cent or $2.6 billion in growth. Business deposits grew $3.7 billion or at system. But CBA said short-term wholesale funding represents just 7 per cent of its total wholesale funding and it kept growing deposits, which were up 6 per cent in the period.
“As higher interest rates impact the Australian economy in the period ahead, we expect economic growth to continue to moderate,” Mr Comyn said.
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