Commonwealth Bank posts an eyewatering profit – as it scraps cash withdrawals and hikes rates on mortgage-holders

Commonwealth Bank posts an eyewatering profit – as it scraps cash withdrawals and hikes rates on mortgage-holders

•  Commonwealth Bank made cash profit of $10.164billion
• This marked a six per cent increase in the year to June 30 

By Stephen Johnson, Economics Reporter For Daily Mail Australia

Updated: 23:51 BST, 8 August 2023

The Commonwealth Bank has made a $10billion profit after scrapping cash withdrawals and hiking mortgage rates 12 times in little more than a year.

Australia’s biggest home lender saw it cash profit rise by six per cent in the year to June 30.

Despite an economic slowdown, the Commonwealth Bank’s $10.164billion full-year net profit has coincided with the rollout of more cashless branches that refuse to do banknote transactions.

This occurred after the Reserve Bank of Australia raised interest rates in June by another quarter of a percentage point to an 11-year high of 4.1 per cent, marking the 12th increase in 13 months. 

A borrower with an average, $600,000 mortgage has, since May 2022, seen their monthly repayments soar by 64 per cent to $3,789, up from $2,306, as variable mortgage rates have climbed to 6.49 per cent, up from 2.29 per cent.

The Commonwealth Bank has made a $10billion profit after scrapping cash withdrawals and hiking mortgage rates 12 times in little more than a year (pictured is a Melbourne city centre branch)

Outside of RBA moves, the Commonwealth Bank has also hiked variable mortgages, slugging new customers. 

Even before the latest earnings announcement, Commonwealth Bank chief executive Matt Comyn was on a  $6.968million remuneration package but this is set to increase.

‘It has been an increasingly challenging period for our customers, dealing with rising cost of living pressures,’ he said on Wednesday.

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