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Speaking at the Commonwealth Bank of Australia (CBA) annual general meeting (AGM) this week, CEO Matt Comyn welcomed the bank’s recent performance — particularly noting its strength in mortgage lending.
During the past year (September 2021 to September 2022), the CBA had, “…processed a record number of home loan applications to provide $157 billion in new lending to households,” Mr Comyn explained.
“When combined with our sound portfolio credit quality and lower provisions, our operating performance was 4 per cent higher,” he added.
“Our continued balance sheet strength and strong capital position, means the Bank is well-positioned to continue supporting our customers and the broader Australian economy, while delivering consistent and sustainable returns to our shareholders.”
With both Mr Comyn and earlier CBA chairman Paul O’Malley underling that the past year has “continued to test our nation”, Mr Comyn stated: "We are sort of beyond full employment, but absolutely recognise the concern and anxiety for many customers with rising cost of living with interest rates and energy prices.”
"We're very confident about the overall outlook for the Australian economy, but recognise that every individual customer's circumstances are different and we need to take that into account."
Earlier this year (August 10), the CBA’s FY22 results – for the year to 30 June – confirmed a cash net profit over the financial year of $9.6 billion, marking an 11 per cent rise, attributing the “strong financial result” to a continued focus on customers and operational and strategic execution.
Home loans in particular displayed an increase of $36.4 billion (7 per cent), compared to FY21. Australian home loans accounted for $556 billion, up from $516 billion, of which 71 per cent were owner-occupied, 28 per cent were investment home loans and 2 per cent were lines of credit.
One in four home loans in Australia is with the Commonwealth Bank.
Embracing new digital platforms
“For our retail customers, we launched Unloan, a simple, fast and mobile-first digital home loan,” Mr Comyn told AGM attendees.
Unloan offers consumers home loans with a discount that increases every year for up to 30 years.
At the time of its launch (17 May) he stated: “Driving digital innovation for our customers – including the delivery of distinct and differentiated customer experiences – is core to CBA’s ongoing strategy.
“Unloan is a powerful example of what can be achieved by successfully bringing together the pace and innovation of the startup world with the scale and assets of Australia’s leading bank, which has always been central to our approach with x15.
“We are excited to see how Unloan makes a difference for new customers.”
When Mortgage Business asked to what extent Unloan had contributed to any loan-processing record to date, a CBA spokesperson replied: “Unfortunately, we do not provide a breakdown of the funding split between CBA and Unloan.”
Looking ahead and supporting the economy
"In this uncertain environment, we remain as focused as ever on supporting our customers and communities," Mr Comyn said.
"We’re also committed to playing our part in supporting the economy, promoting financial stability and encouraging growth.
"Overall, we remain fundamentally optimistic about the medium- to long-term opportunities for Australia, as well as our capacity to provide support in the immediate future for customers who need us.
"Looking ahead, we will continue to invest in the bank’s core retail, business and institutional banking franchises, to reinforce our proposition and extend our digital leadership.
"We believe that strong customer engagement and deeper relationships will continue to underpin our ongoing positive performance," he concluded.
[Related: CBA home lending ticks up in FY22]
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