Banking major's home loan market share holds steady
Commonwealth Bank’s chief executive Matt Comyn (pictured) delivered a sober assessment of Australia’s economic status in today’s first-half results, which should nonetheless fortify the banking major’s expectations of an interest rate cut next week.
“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. Private sector growth is weak, immigration is starting to slow and geopolitical uncertainties remain,” said Comyn.
“However, underlying inflation is now moderating towards the target range and we expect Australia will follow offshore economies with an easing cycle in 2025. This should provide some relief to many households and improve business confidence.
“The strong labour market and level of ongoing public actor infrastructure spend also provide cause for optimism on the domestic outlook.”
On the earnings front, CommBank posted $5.14 billion in profit after tax, marking a 5% year-on-year increase. The net interest margin was effectively flat at 2.08%.
CommBank maintained a 25.4% share of the home loan market, according to APRA data published in the results, and an 18.7% share of the business lending segment.
Business banking saw the most growth with a 6% yearly increase to $2 billion, while the core retail banking segment increased 2% to $2.71 billion.
An interim dividend of $2.25 per share was announced, representing a 5% bump from the first half of 2024. CommBank’s CET1 ratio held strong at 12.2%.
