The CBA cash machine sputters

Monday, 9 May 2016

The CBA has rendered its Q3 trading update:

That’s a miss on expectations of -3-5% as net interest margins were flat 2.06% despite recent loan repricing indicating margin pressures are real and growing. Capital improved and the bank is making good use of the RBA’s cash for coconuts facility:

Bad debts rose across the bank with the exception of personal loans (the big jump in Q3 is the ARI impairment):

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.