CommBank has now released its full year results and it showed that despite the slowing economy, they're still booming.
👉 Background: Commonwealth Bank is the largest of the Big 4 banks in Australia, where they have nearly 25% of all mortgages in Australia.
👉 What happened: Now, CommBank has now released its full year results and it showed that despite the slowing economy, they're still booming. In fact, they generated $10.16 billion in full-year profit, which is up 6% on the previous year.
👉 What else: What's most interesting was some of their customer data; they shared that savings balances for customers over 65 years old grew by 5% thanks to higher interest rates over the past year. While for customers under 34, savings declined by more than 3%.
💡Rate rises lead to very different outcomes for different age groups. The rises are generally beneficial for those with significant savings and smaller (or no) mortgages.. And this tends to be those who are older.
💡In fact, nearly 60% of all CBA mortgages are held by customers under the age of 44. So when interest rates rise, it's the people under 44 who are copping it the most.
💡So, in a high interest environment, it means the financial divide between the old and the young seems to be widening.
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