Weak income growth triggering higher arrears: Pete Wargent

Weak income growth triggering higher arrears: Pete Wargent
Weak income growth triggering higher arrears: Pete Wargent

Home loan arrears are just beginning to creep a bit higher on weak income growth.

So reports the Commonwealth Bank (ASX: CBA) in its trading update.

 
Source: ASX

The market was unhappy with the trimmed unaudited cash profit of $2.35 million.

The result is 2.1 per cent lower than the unaudited figure for the prior year's corresponding period. 
 
Share price latest: down -3.4 per cent to $71, having bounced off the intraday lows at $70.80.
 
Our latest report for funds and institutional investors Chemical Change discusses the downside risks eventuating from a combination of trimmed lending volumes, a potential loss of market share, compressed margins, and an uptick in home loan arrears. 
 
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

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