Advisers
Learn
Newsletter
Offers
Podcast
About
  Back
~
1
min read
· Posted on
February 21, 2024

While the world worries about cost-of-living, CommBank just banked $2.5 billion in profit this quarter

CBA has released its quarterly results which were described as "solid".

What's the key learning?

  • CBA released its quarterly results with a whopping $2.5 billion in profit, which is 13% more than they made in the same quarter last year.
  • CBA notes that bad debts have dropped even as interest rates have gone up.
  • Banks and some retailers are still showing very strong financial results but CBA warned that only 50% of the rate rises have actually been passed on to its customers because of fixed-rate loans.

👉 Background: CBA (aka Commonwealth Bank of Australia) is Australia’s largest retail bank with nearly 17 million customers.

👉 What happened: CBA has released its quarterly results which were described as "solid". In fact, it reported a whopping $2.5 billion in profit! And this is 13% more than they made in the same quarter last year.

👉 What else: It's interesting because CBA notes that bad debts have dropped even as interest rates have gone up.

What's the key learning?

💡These CBA results indicate that the Australian economy isn’t quite adding up right now. We’ve got:

  • Interest rates rising at the fastest rate over the past 20 years
  • Inflation rising at the fastest rate in over 30 years.
  • Business and consumer confidence is at the lowest rate since the 2008 GFC

💡Yet banks and even some retailers are still showing very strong financial results. But CBA warned that only 50% of the rate rises have actually been passed on to its customers - thanks to fixed-rate loans.

💡For now, we know that there might be dark clouds ahead, but consumers haven’t really changed their spending habits yet.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at WorkAdvisers
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 1283166) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
No items found.