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2
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· Posted on
February 21, 2024

CBA's absolutely rollin' in cash right now and it's coming for NAB's business banking biz

CBA just announced an annual cash profit of $9.6 billlion, but it ain't stopping there because now it's looking at business banking.

What's the key learning?

  • CBA announced an annual cash profit of $9.6 billion and now it's making a serious play for the business banking market
  • Amid the rising interest rates and slowing down of home loans, the big 4 banks are looking to new areas for growth
  • CBA is doing everything to bring on new customers today so it can become their business lender in the future

👉 Background: We know CBA is Australia’s biggest bank (by valuation at $172 billion, by customers at around 16 million and by mortgage lending).

👉 What happened: Yesterday CommBank’s CEO announced an annual cash profit of $9.6 billion. Kaching!

👉 What else: But Commbank ain't done yet. It's making a serious play for the business banking market.

What's the key learning?

💡 With interest rates expected to continue rising and home loans expected to slow, the Big 4 banks are looking towards new areas for growth - like business banking.

💡 Currently, NAB is numero uno for biz banking. That means CommBank will need to play the long game. But there is a well-trodden path: 60% of consumers  took out a home loan with a lender they had an existing relationship with.

💡The same principle applies to business banking. So CBA is doing everything it can to bring on new business customers today, so it can hopefully become their business lender in the future.

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