Commonwealth Bank is making eye-watering profits as it cuts cash withdrawals and raises rates for mortgagees
- Commonwealth Bank made a cash profit of $10.164 billion
- This represented a six percent increase in the year to June 30
The Commonwealth Bank has made a $10 billion profit after cutting cash withdrawals at some branches and raising mortgage rates 12 times in just over a year.
Australia’s largest lender saw its cash profit rise by six per cent in the year to June 30.
Despite an economic slowdown, the Commonwealth Bank’s $10.164 billion net profit coincided with the rollout of more cashless branches refusing to carry out banknote transactions.
Teller cash transactions are not available at branches, including Commonwealth Bank Place in central Sydney, as well as nearby South Eveleigh, Barangaroo, Penrith and University of Sydney, which the bank now refers to as ‘specialised centres’.
This came after the Reserve Bank of Australia raised interest rates by another quarter of a percentage point in June to an 11-year high of 4.1 percent, its 12th hike in 13 months.
A borrower with an average mortgage of $600,000 has seen their monthly payments increase by 64 percent to $3,789 since May 2022, up from $2,306, as variable mortgage rates have risen from 2.29 percent to 6.49 percent.
The Commonwealth Bank has made a $10bn profit after cutting cash withdrawals and raising mortgage rates 12 times in just over a year (pictured is a branch in Melbourne’s city centre)
Outside of RBA moves, the Commonwealth Bank has also increased variable mortgages, attacking new customers.
Even before the latest earnings announcement, Commonwealth Bank CEO Matt Comyn had a $6.968 million compensation package, but this is expected to increase.
“It’s been an increasingly challenging period for our customers, who are facing a rising cost of living,” he said Wednesday.
Even before the latest earnings announcement, Commonwealth Bank CEO Matt Comyn had a $6.968 million pay package, but this is expected to increase