Home loan volumes up, but CommBank reports lower than expected profit

Home loan volumes up, but CommBank reports lower than expected profit
Home loan volumes up, but CommBank reports lower than expected profit

The nation's largest bank, Commonwealth Bank of Australia's has reported a 6 per cent fall in its net profit, hit by the costs associated with fixing historic misconduct issues and tighter margins due to competition and rising costs.

The CBA produced a weaker than expected result. 

First-half profit came in at $4.6 billion, down from $4.9 billion in the corresponding period last year.

Home loan volumes up, but CommBank reports lower than expected profit

Cash profit — the bank's preferred measure that strips out one-off gains and losses — rose 1.7 per cent to $4.68 billion, with higher sales volumes of loans offset by lower margins.

It lower than the $4.87 billion it reported for the first half last year.

CBA reported that cash profit fell 2.1 per cent.

Home loan volumes up, but CommBank reports lower than expected profit

The interim dividend per share was flat at $2.00. 

The bank recorded an operating income of $12.4 million which was down 1.9 per cent for the same period a year earlier. 

Volume growth in the core business resulted in lending and deposits increasing by 2 per cent, while home loan volumes increased 4 per cent.

The growth was more for owner occupiers than investors.

 

Tags: 
Net Profit Commonwealth Bank

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