Commonwealth Bank posts $5billion cash profit after closing down more than 350 branches in the past five years
Commonwealth Bank has announced a cash profit of $5 billion, which is lower than market expectations and comes after the bank closed 354 branches and removed 2,297 ATMs in the past five years.
CEO Matt Comyn said cost-of-living pressures continued to impact Australian households, causing their spending to fall.
“Our lower cash profit reflects cost inflation and a competitive business environment,” Mr Comyn said.
The bank’s net profit margin, the difference between its financing costs and what it charges for loans, fell 6 points from the previous financial half to 1.99 percent.
The bank attributes the decline to increased competition, higher financing costs and customer behavior.
The market had expected CBA to post a net cash profit of $5.1 billion.
Commonwealth Bank has announced a cash profit of $5 billion, which is lower than market expectations and comes after the bank closed 354 branches and removed 2,297 ATMs in the past five years.
Earlier this month, Daily Mail Australia revealed that CBA had closed 354 branches in the past five years and plans to close a further three branches in populated areas of three major cities next month.
Despite record profits, Australia’s largest housing provider has closed a third of its branches since June 2018, when 1,082 were still operating.
Due to a sharp drop in the use of cash, the CBA also removed 2,297 ATMs during the period, representing a 54 percent drop, or halving, in the number of banknote machines.
The bank now plans to close its Rundle Mall branch in central Adelaide on March 1, along with branches in Coolangatta on the Gold Coast and Coogee in Sydney.
“Following a recent review, we have made the difficult decision to permanently close our branches in Rundle Mall Adelaide, Coolangatta and Coogee,” a spokesperson told Daily Mail Australia.