CBA records rise in home loans

Reporting on its half-year profit, the bank reported an overall cash net profit (after tax) of $4.75 billion – an increase of 23 per cent over the previous period.

In particular, home loan volumes jumped 8.5 per cent in the six months to 31 December up $40.4 billion, compared with a year earlier, with its mortgage book growing at 1.2 times system growth.

Household deposits also grew by 12.2 per cent up $36.9 billion.

It was broker-lodged loans that saw a comeback increasing 49 per cent, after a slight downturn in the previous reporting period.

This took CBA’s total loan book (including Bankwest) to $539 billion as at 31 December 2021 – an increase of $41 billion from the previous year.

Matt Comyn, CBA’s chief executive, said the bank’s “strong financial result” had been achieved through “continued customer focus and disciplined operational execution.”

“Higher cash profits were a result of continued volume growth across the business in home lending, business lending and deposits lower loan impairment expense due to the improving economic outlook, and a reduction in remediation expenses,” Mr Comyn said.

“We have continued to invest in operational execution and the ongoing strengthening of our business, consistent with our strategic priorities.”

And with the “strong growth” in its broker channel, the bank was “very focused” on improving efficiencies into 2022.

“The team are very focused on trying to improve and streamline the process both for brokers and for customers, and a degree of automation,” Mr Comyn said.

“I think we’ll continue to make sure that we’re providing a very high level of service across the market and continue to support the broker channel.” 

Its business lending division also continued its strong turnaround, with lending volumes up 12.5 per cent year-on-year, or $13.2 billion, as the business loan book grew 1.7 times.

Meanwhile business deposits increased by 14.1 per cent up $21 billion.