As it stated in Australia’s biggest lender, the Commonwealth Bank, has announced profits of $4.9billion in the second half of 2016 meaning a big payout for shareholders.
Property investors with interest-only loans have been told to expect a 0.12 per cent increase while mortgage customers who have taken out a line of credit against their home face a 0.04 per cent increase.
Commonwealth Bank chief executive Ian Narev said: ‘We have maintained our commitment to our long term strategy.
The announcement came at the same time as the bank hit some customers with interest rate hikes on their loans.
The results edged ahead of economists’ projections, which expected the bank to post a $4.84billion profit and to keep the interim dividend flat at $1.98.
Commonwealth Bank of Australia soars to record H1 profit
As it stated in Australia’s Commonwealth Bank experienced a two percent lift in cash profit to Aus$4.91 billion (US$3.76 billion) for the six months to December (AFP Photo/PETER PARKS)Australia’s biggest company Commonwealth Bank on Wednesday posted a record first-half cash profit on the back of strong growth in home lending.
The two percent lift to Aus$4.91 billion (US$3.76 billion) for the six months to December, a measure preferred by financial institutions, was slightly above analysts’ expectations.
The retail banking division drove the rise in cash profit, strengthening by nine percent from the previous period to Aus$2.47 billion, backed by strong home loan growth.
Net profit was up six percent at Aus$4.90 billion year on year.
The Commonwealth — the first of the country’s big four banks to report half-yearly earnings — declared a one percent rise in the interim dividend to Aus$1.99 cents.
As it stated in
Commonwealth Bank posts record half-year profit of $4.9b, hikes rates for property investors
The Commonwealth Bank’s half year profits have swelled to $4.91 billion at the same time as it targeted property investors with another interest rate hike.
The lender is also raising home loan interest rates for property investors with interest-only loans, who will face a 0.12 percentage point increase.
Those interest rate hikes come after CBA last week froze new lending to property investors wanting to refinance from other banks, while its Bankwest subsidiary has also tightened the screws on new investors who are negatively gearing.
In its outlook for the economy, CBA said the prospects for the Australian economy were “encouraging,” citing the lift in commodity and the mining investment slump nearing its end.
Mortgage customers who have taken out a line of credit against their home face a 0.04 percentage point rate hike.
collected by :Raul Soly