CommBank shares slump on latest results
- Australia's biggest bank, Commonwealth Bank, reported a 4 per cent profit rise to $2.7bn on Tuesday, but shares plunged 8.5 per cent Wednesday as investors reacted to the update.
- Personal loan arrears spiked to 1.71 per cent, the highest level since before the pandemic, prompting the bank to increase bad debt provisions by $200m to $6.5 billion total.
- Chief Matt Comyn highlighted the bank's 'resilient' balance sheet despite the pressures, noting home loan and credit card arrears remained broadly stable at 0.69 per cent and 0.68 per cent.
- The sell-off spread across major banks, with the financial sector dropping 4.01 per cent, as VanEck senior portfolio manager Cameron McCormack warned the 'cycle is beginning to turn' on credit growth.
- With shares down 3.4 per cent over the past 12 months, CBA faces mounting pressure from cost-of-living challenges and potential changes to negative gearing and capital gains tax announced Tuesday.
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Michael West
Business NewsCommonwealth Bank's quarterly profit dips to $2.7b
Commonwealth Bank turned a $2.7 billion cash profit in the March quarter, up four per cent from a year ago but down one per cent from its first-half quarterly average. Operating income was flat in the three months to March 31 and underlying net interest margin was broadly stable. CBA spent $3.36 billion on operating expenses, up one per cent from it did on average in the first half, reflecting higher cloud computing volumes and software licensin…
Down 10%: 3 key takeaways from CBA results
Commonwealth Bank of Australia (ASX: CBA) shares are having a rough day. On Wednesday afternoon, the banking giant's shares are down 10% to $154.71. That follows the release of its third-quarter results this morning. However, I would be careful about blaming the entire move on the result itself. The broader market is also under pressure, and investors may still be digesting the Federal Budget and what it means for banks, households, housing, an…
ASX 200 Slumps 0.52% as CBA Plunges on Budget Tax Changes and Rising Bad Debts
SYDNEY — The S&P/ASX 200 index fell sharply Wednesday, closing at 8,625.3 after shedding 45.4 points or 0.52 percent, as heavy selling in banking stocks — led by a near 10 percent crash in Commonwealth Bank — overshadowed gains in mining giants and reflected investor unease over the federal budget's tax reforms.
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