Commonwealth Bank gets $2.4b boost thanks to better economy
Australia’s biggest bank is continuing to ride the nation’s post-recession economic recovery after posting another jump in earnings.
Commonwealth Bank of Australia’s cash profit from continuing operations rose to $2.4 billion in the third quarter of this financial year.
When measured against the average outcome for the first two quarters of the year, the latest result was 24 per cent higher.
“The economic recovery from the COVID-19 induced recession (last year) is continuing apace,” CBA said in a statement on Wednesday.
The third-quarter result was driven by strong home loan growth and increases in business lending while loan impairments were also lower.
During the pandemic, 158,000 home loan customers and 83,000 business loan customers took advantage of the bank’s loan deferral program to suspend their repayments.
The “vast majority” have now resumed regular repayments, including 81 per cent of home loan customers, the bank said.
Of the remainder, 10 per cent closed their accounts and four per cent switched to interest-only arrangements.
Another four per cent require ongoing support and the final one per cent have been “restructured”.
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