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· Posted on
February 21, 2024

CommBank's $2.5 billion cash bonanza so who needs growth when you've got much moula?

CommBank has announced a $2.5 billion profit for the past 3 months to September.

What's the key learning?

  • CommBank isn't fighting for new customers, whileANZ and Westpac are pushing hard to gain market share with reduced margins.
  • When the giants of banking clash, the tremors can reshape the market landscape.
  • The pricing and product offerings of the big 4 banks have historically been aligned, and that has meant there's a lack of meaningful competition for customers.

👉 Background: CommBank is the largest of the Big 4 banks in Australia with nearly 17 million customers in Australia alone. They're also have the biggest mortgage market share with nearly 26% of the market in Australia.

👉 What happened: Now, CommBank has announced a $2.5 billion profit for the past 3 months to September. But the most interesting part of this is that CommBank isn't fighting for new customers.

👉 What else: On the other hand, ANZ and Westpac who are pushing hard to gain market share with reduced margins. And this battle between the banks is becoming juicier than Auction Day on The Block.

What's the key learning?

💡When the giants of banking clash, the tremors can reshape the market landscape.

💡There's no doubt that the pricing and product offerings of the Big 4 banks have historically been pretty much aligned. And, that has meant there's a lack of meaningful competition for customers slash borrowers—especially given these four banks hold about 76% of the home loan market.

💡But with some animosity between the banks right now, it's ultimately a good thing for competition and customers.

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