This article is from the Australian Property Journal archive
THE Commonwealth increased its interim profit to $5.14 billion and its dividend by 5% as it reaffirmed its expectation that imminent interest rate cuts will provide relief to hard-hit households.
Statutory net profit after tax came in 6% higher than the prior corresponding period (pcp).
Its interim dividend came in at $2.25 per share.
“The Australian economy has slowed considerably, with cost of living pressures continuing to weigh on consumer demand and younger customers in particular making real sacrifices,” said CEO Matt Comyn.
“Private sector growth is weak, immigration is starting to slow and geopolitical uncertainties remain. However underlying inflation is now moderating towards the target range and we expect Australia will follow offshore economies with an easing cycle starting in 2025. This should provide some relief to many households and improve business confidence.
“The strong labour market and level of ongoing public sector infrastructure spend also provide cause for optimism on the domestic economic outlook.”
The latest inflation data showed the underlying inflation measure had eased further, within touching distance of the RBA’s target band, and has prompted most analysts and now all four of the major banks to tip an interest rate cut at the RBA’s board meeting next week.
CBA’s market share of home loans lifted 10 basis points in six-month period, back to the 24.6% of the pcp.
Home loan 90-plus day arrears were 0.66%, an increase of one basis point on the prior half, supported by seasonal tax refunds and changes to tax rates and thresholds.
Comyn said more than 65,000 mortgage holders were on tailored payment arrangements provided by the CBA “for those most in need of support”.
Australian home loans amount to $616 billion, up from $582 billion a year earlier, of which 69% were owner occupied, 30% were investment home loans and 1% were lines of credit.
