Weak income growth triggering higher arrears: Pete Wargent
Pete WargentDecember 17, 2020
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.
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
Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.