Matt Comyn,.the CEO of Commonwealth Bank of Australia, has said that the country’s surging migrant intake was helping to sustain the economy.
Daily Mail reports that in the first quarter of this month, the bank’s profits sank to $2.4 – its second consecutive drop.
Comyn told investors at a trading update that its business and the Australian economy remained sound.
He said unemployment remained low in the country.
“We recognize that all households are feeling the impact of higher inflation and higher rates; however, immigration is providing a structural tailwind for the economy,” he said.
However, the nation’s largest lender recorded a rise in loan impairment expenses of $191m in the first three months of 2024. Areas in home lending rose to 0.6 per cent, up 9 basis points, as households came under increased pressure from elevated interests. Late payments on credit cards also jumped 9 basis points to 0.7 per cent. Both remained below their historic averages. 90-day-repayment on personal loans too jumped 0.2 per cent to 1.3 per cent.
Higher staff costs and amortisation pushed expenses 2 per cent higher, while operating income went down by 1 per cent.
