Particle.news
Download on the App Store

CBA Profit Climbs to $2.7 Billion, Shares Sink on Costs and Rising Loan Arrears

Investors read the quarterly update as a warning sign of consumer stress.

Overview

  • Commonwealth Bank reported a 4% year-on-year cash profit of $2.7 billion for the March quarter, with operating income flat and net interest margin broadly stable.
  • Operating expenses rose to $3.36 billion, driven by higher cloud use, software licensing, and new spending on AI tools.
  • The bank recorded $316 million in loan impairment charges and increased collective provisions to reflect wider economic and geopolitical risks.
  • Personal loans more than 90 days overdue rose to about 1.7%, the highest since 2019, while home loan and credit card arrears stayed near 0.69% and 0.68%.
  • Shares fell sharply in early trade, reported down about 8.5%, even as CBA pointed to strong capital, ample deposits, and market share gains in business lending.