CBA still Australia’s biggest home loan lender
Commonwealth Bank is reporting a booming level of profit this year, as it holds back rate cuts from home owners.
CommBank, Australia’s largest home loan lender, is on track for a record full year profit and reported a cash profit of $1.9 billion in the three months to March 31, up 8.5 per cent from the same period last year.
CommBank’s margin on loans rose, due to “re-pricing” in the final few months of calendar 2012. The bank cut its standard variable mortgage rate by 0.4 percentage points between October and December, while the Reserve Bank of Australia cut the cash rate by 0.5 percentage points in the same period.