Commonwealth Bank's cash profit for the first half of the financial year dropped by 3% to $5 billion due to intense competition in the mortgage market. The bank's CEO, Matt Comyn, stated that 2024 will be a challenging year for the bank and the economy due to inflation and slowing demand. Despite the lower profit, the bank remains strong and will continue to invest in products and services.
Commonwealth Bank ’s cash profit fell 3 per cent in the first half of the financial year to $5 billion as margins suffered from intense competition in the mortgage market . The bank will pay a $2.15 a share interim dividend, fully franked, as chief executive Matt Comyn reiterated that 2024 represented a challenging year for Australia’s largest lender and the broader economy given “persistent” inflation and slowing demand .
“Our lower cash profit reflects cost inflation and a competitive operating environment,” Mr Comyn said, but he added CBA remains strong. “We further strengthened our balance sheet, with high levels of provision coverage, surplus capital and conservative funding metrics … The stability of our earnings and our balance sheet strength allows us to invest in products, services and experiences that our customers value.”Operating income was flat on the prior corresponding period at $13.65 billion, with lower net interest income offset by higher fees and markets trading.Net interest margin fell a further 6 basis points in the December-half to
Commonwealth Bank Cash Profit Mortgage Market Competition CEO Inflation Slowing Demand Investment
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