Commonwealth Bank Shares battered as profit margins tighten
- Shares in Commonwealth Bank (CBA) take a beating after the big bank flags thin loan margins despite an increase in first-quarter profit
- The bank’s unaudited cash profit topped $2.2 billion over the September quarter — 20 per cent higher than the same time last year, but lower than the first two quarters of 2021
- However, fierce competition in the home loan market and low interest rates eroded CBA’s net interest margin, which was “considerably lower” than preceding quarters
- Still, CEO Matt Comyn says the bank’s volume growth, portfolio credit quality, and balance sheet strength is evidence of its sound strategy
- It seems investors were not willing to look past the quarterly profit margins, with CBA shares down 7.09 per cent at 12:31 pm AEDT to just over $100 a share
