Commonwealth Bank of Australia (CBA) reported a cash profit of $5.13 billion for the six months to December 31, exceeding analyst expectations. While the bank acknowledged persistent cost-of-living pressures and weak private sector growth, it highlighted improving economic indicators and rising household disposable incomes. CBA also noted that younger Australians are making 'real sacrifices' to cope with the cost of living.
Younger Australians have been making “real sacrifices” to deal with persistent cost-of-living pressures and private sector growth is weak, the country’s largest bank has said as it posted its half-year results.
Commonwealth Bank chief executive Matt Comyn said the Australian economy had slowed considerably as he delivered the results, but flagged economic relief will finally flow through when the central bank cuts interest rates this year. “The strong labour market and level of ongoing public sector infrastructure spend also provide cause for optimism on the domestic economic outlook.”
Profits were boosted by lower loan impairments, the bank said, supported by rising house prices and lower than expected losses within the consumer finance division. Loan impairment expenses fell 23 per cent compared to the same time last year.“Consumer arrears remained broadly stable, supported by tax refunds and changes to income rates and thresholds,” CBA said. “Our home lending portfolio remains well-secured and the majority of home lending customers remain in advance of scheduled repayments.
ECONOMY BANKING PROFITS COST-OF-LIVING AUSTRALIA
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