Commonwealth Bank reports flat Q3 profit at $2.6b, CEO Matt Comyn flags high ‘risk to the global economy'
Commonwealth Bank has reported a flat quarterly profit of $2.6 billion, while warning that uncertainty continues to dog the economy.
The bank's revenue rose by one per cent over the quarter to $14.1b, largely driven by lending growth and higher trading income, while expenses grew one per cent to $6.37b. The bank said it also saw a slight uptick in impaired loans.
Commbank chief executive Matt Comyn described the quarter as 'another challenging period for many Australian households and businesses dealing with cost-of-living pressures', and said the bank was proactively engaging with customers facing hardship.
He also said the global turmoil could impact the country's economic rebound.
'There is heightened risk to the global economy from geopolitical and macroeconomic uncertainty which could slow the domestic economy,' Mr Comyn said.
Commonwealth Bank's lacklustre quarter follows equally uninspiring results from Westpac, NAB, and ANZ last week, when all three reported flat or sagging earnings.
On Monday last week, Westpac revealed a one per cent fall in first-half net profit to $3.45b, excluding one-off items, with chief executive Anthony Miller describing geopolitical uncertainty as 'a key risk that's as high as it has been for a very long time'.
National Australia Bank showed a one per cent increase in cash earnings to $3.6b, with chief executive Andrew Irvine saying he was cautiously optimistic about the economy.
Like the other banks, Commonwealth Bank has been targeting business customers, and grew that segment by 1.3 times the system average. Home lending showed more moderate expansion, growing slightly slower than the market.
After a period of decline in arrears, Commbank has seen a tick back up in impairment, with both home loan arrears and corporate arrears growing over the previous quarter, although they remain near historical lows.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Herald Sun
2 hours ago
- Herald Sun
New owner for rundown Toorak mansion with a wild history
A dilapidated Toorak mansion with a colourful history has fetched more than $5m. Named Cloyne, the circa-1926 Georgian Revival house at 611 Toorak Rd was scheduled to go under the hammer on Saturday. But due to a high level of interest from buyers, a boardroom auction for the property was held on Thursday. RELATED: Toorak land now asking $40m with no permit Toorak mid-century home listed with plans to transform into $8m luxury residence Myer family reveal new look for Toorak estate aiming to be Melbourne's second $100m home Jellis Craig Stonnington director Nathan Waterson declined to comment on the sold price but industry insiders indicated the five-bedroom home changed hands for a figure above the $4.75m-$5.225m asking range. The abode featuring a ballroom and a pool flanked by lion statues was previously owned by Louis Nelken, who was reportedly a butler to King George VI. In 1935, newspapers covered a reception that Mr Nelken and his wife Lesley held for guests to meet the then-political candidate for the seat of Fawkner, Harold Holt. Mr Holt later became the Australian Prime Minister and disappeared while swimming near Portsea in 1967. The Nelken's parties often made the gossip columns including a 1948 Melbourne Cup eve soiree they hosted for 300 people. Two years later, thieves broke into Cloyne and stole £5500 worth of jewellery, drank a bottle of Mr Nelken's beer and smoked his cigarettes. In the 1960s, Melbourne playboy and pilot Don Busch owned Cloyne before it was sold to hotelier William Drever. The mansion, which is protected under a heritage overlay, was designed by influential Australian architect Harold Desbrowe-Annear. Its interior has been subject to partial renovations across past years and requires significant work to restore its former glory. Three bidders contested the auction for Cloyne including one Canberra-based buyer, although the house was bought by a Melbourne family. 'I would say that all parties were there due to the architectural heritage of the home, the Harold Desbrowe-Annear design was a drawcard for a lot of people,' Mr Waterson said. According to PropTrack, Victoria recorded a preliminary 68.4 per cent clearance rate from 250 early auction results this week. About 1058 homes are expected to go under the hammer across the state next week. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: Former Carlton star Fraser Brown seals nine-figure deal Price shock: Luxe Aussie mansions now start at $2.52m Balwyn North arcade hits market after 50 years
Sky News AU
4 hours ago
- Sky News AU
‘Doesn't stack up': Australian review of US beef considers demand
Hunter Valley Cattle Farmer Tony Hegarty reacts to US beef imports facing an Australian review, claiming 'it doesn't stack up' considering the $3.3 billion traded last financial year. 'It doesn't stack up, their prices over there are significantly higher than ours on equivalent terms, apart from freight, just the cost of it,' Mr Hegarty told Sky News Australia. 'They're demanding a lot of beef from us … $3.3 billion of beef into the US last financial year. 'It's not as if we're not allowing imports, it's 'does it make sense?', and 'do they meet the requirements?''
The Advertiser
6 hours ago
- The Advertiser
Biosecurity not competition a meaty issue in beef talks
Even if the federal government lowers barriers blocking imports of US beef, it would be no match for higher quality and cheaper to produce Australian cattle. Australia is considering granting more American beef producers access to the local market as a potential bargaining chip to strike a deal on tariffs, as the two nations' leaders prepare to potentially meet face-to-face for the first time. For biosecurity reasons, Australia imposes a soft ban on US beef. Cattle that can be proven to have been raised and slaughtered in the US are allowed into the Australian market, but large amounts of beef sent to American abattoirs come from Mexico or Canada, which are barred from importation. Challenges in tracing the origin of cattle means in practice beef imports are not allowed, until the US can show the same traceability systems Australia has in place. Australian beef producers urged the government not to loosen biosecurity protections. "Australia's biosecurity status is integral to the success and sustainability of our agricultural industries," National Farmers Federation president David Jochinke said. Prime Minister Anthony Albanese assured farmers the government would make no compromises on biosecurity. But as long as biosecurity was protected, Mr Albanese said he would be open to discussions about easing restrictions. David Humphreys, vice chair of industry body Western Beef Association, was open to the idea as well. As long as Australia's biosecurity standards were protected, it would be a beneficial outcome for all Australian farmers if it could be used as leverage to lower US tariffs, he said. Assuming US beef imports posed no disease risk, the impacts for Australian farmers from extra competition would be limited. "Australia has very competitive and relatively cheap beef production in comparison," Mr Humphreys told AAP. "Any beef that's coming in from the US is probably going to be targeting quite select segments of beef consumption, probably the cheaper cuts, produced beef products. "So it's not really competing with the premium Australian beef products that our beef farms produce." The low exchange rate of the Australian dollar as well as the high cost of transporting US beef also reduced the likelihood of it outcompeting homegrown products, he said. Local consumers are accustomed to leaner, higher-quality Australian beef and unlikely to be won over by fatty, hormone-injected American competitors. "I think there's not a lot of risk to Australian producers of beef, with this possibility of some limited US beef being imported into Australia," Mr Humphreys said. Australia's Department of Agriculture is reviewing its ban on Mexican and Canadian beef slaughtered in the US. Agriculture Minister Julie Collins said any decision to allow greater access for US beef would be based on science and evidence. Even if the federal government lowers barriers blocking imports of US beef, it would be no match for higher quality and cheaper to produce Australian cattle. Australia is considering granting more American beef producers access to the local market as a potential bargaining chip to strike a deal on tariffs, as the two nations' leaders prepare to potentially meet face-to-face for the first time. For biosecurity reasons, Australia imposes a soft ban on US beef. Cattle that can be proven to have been raised and slaughtered in the US are allowed into the Australian market, but large amounts of beef sent to American abattoirs come from Mexico or Canada, which are barred from importation. Challenges in tracing the origin of cattle means in practice beef imports are not allowed, until the US can show the same traceability systems Australia has in place. Australian beef producers urged the government not to loosen biosecurity protections. "Australia's biosecurity status is integral to the success and sustainability of our agricultural industries," National Farmers Federation president David Jochinke said. Prime Minister Anthony Albanese assured farmers the government would make no compromises on biosecurity. But as long as biosecurity was protected, Mr Albanese said he would be open to discussions about easing restrictions. David Humphreys, vice chair of industry body Western Beef Association, was open to the idea as well. As long as Australia's biosecurity standards were protected, it would be a beneficial outcome for all Australian farmers if it could be used as leverage to lower US tariffs, he said. Assuming US beef imports posed no disease risk, the impacts for Australian farmers from extra competition would be limited. "Australia has very competitive and relatively cheap beef production in comparison," Mr Humphreys told AAP. "Any beef that's coming in from the US is probably going to be targeting quite select segments of beef consumption, probably the cheaper cuts, produced beef products. "So it's not really competing with the premium Australian beef products that our beef farms produce." The low exchange rate of the Australian dollar as well as the high cost of transporting US beef also reduced the likelihood of it outcompeting homegrown products, he said. Local consumers are accustomed to leaner, higher-quality Australian beef and unlikely to be won over by fatty, hormone-injected American competitors. "I think there's not a lot of risk to Australian producers of beef, with this possibility of some limited US beef being imported into Australia," Mr Humphreys said. Australia's Department of Agriculture is reviewing its ban on Mexican and Canadian beef slaughtered in the US. Agriculture Minister Julie Collins said any decision to allow greater access for US beef would be based on science and evidence. Even if the federal government lowers barriers blocking imports of US beef, it would be no match for higher quality and cheaper to produce Australian cattle. Australia is considering granting more American beef producers access to the local market as a potential bargaining chip to strike a deal on tariffs, as the two nations' leaders prepare to potentially meet face-to-face for the first time. For biosecurity reasons, Australia imposes a soft ban on US beef. Cattle that can be proven to have been raised and slaughtered in the US are allowed into the Australian market, but large amounts of beef sent to American abattoirs come from Mexico or Canada, which are barred from importation. Challenges in tracing the origin of cattle means in practice beef imports are not allowed, until the US can show the same traceability systems Australia has in place. Australian beef producers urged the government not to loosen biosecurity protections. "Australia's biosecurity status is integral to the success and sustainability of our agricultural industries," National Farmers Federation president David Jochinke said. Prime Minister Anthony Albanese assured farmers the government would make no compromises on biosecurity. But as long as biosecurity was protected, Mr Albanese said he would be open to discussions about easing restrictions. David Humphreys, vice chair of industry body Western Beef Association, was open to the idea as well. As long as Australia's biosecurity standards were protected, it would be a beneficial outcome for all Australian farmers if it could be used as leverage to lower US tariffs, he said. Assuming US beef imports posed no disease risk, the impacts for Australian farmers from extra competition would be limited. "Australia has very competitive and relatively cheap beef production in comparison," Mr Humphreys told AAP. "Any beef that's coming in from the US is probably going to be targeting quite select segments of beef consumption, probably the cheaper cuts, produced beef products. "So it's not really competing with the premium Australian beef products that our beef farms produce." The low exchange rate of the Australian dollar as well as the high cost of transporting US beef also reduced the likelihood of it outcompeting homegrown products, he said. Local consumers are accustomed to leaner, higher-quality Australian beef and unlikely to be won over by fatty, hormone-injected American competitors. "I think there's not a lot of risk to Australian producers of beef, with this possibility of some limited US beef being imported into Australia," Mr Humphreys said. Australia's Department of Agriculture is reviewing its ban on Mexican and Canadian beef slaughtered in the US. Agriculture Minister Julie Collins said any decision to allow greater access for US beef would be based on science and evidence. Even if the federal government lowers barriers blocking imports of US beef, it would be no match for higher quality and cheaper to produce Australian cattle. Australia is considering granting more American beef producers access to the local market as a potential bargaining chip to strike a deal on tariffs, as the two nations' leaders prepare to potentially meet face-to-face for the first time. For biosecurity reasons, Australia imposes a soft ban on US beef. Cattle that can be proven to have been raised and slaughtered in the US are allowed into the Australian market, but large amounts of beef sent to American abattoirs come from Mexico or Canada, which are barred from importation. Challenges in tracing the origin of cattle means in practice beef imports are not allowed, until the US can show the same traceability systems Australia has in place. Australian beef producers urged the government not to loosen biosecurity protections. "Australia's biosecurity status is integral to the success and sustainability of our agricultural industries," National Farmers Federation president David Jochinke said. Prime Minister Anthony Albanese assured farmers the government would make no compromises on biosecurity. But as long as biosecurity was protected, Mr Albanese said he would be open to discussions about easing restrictions. David Humphreys, vice chair of industry body Western Beef Association, was open to the idea as well. As long as Australia's biosecurity standards were protected, it would be a beneficial outcome for all Australian farmers if it could be used as leverage to lower US tariffs, he said. Assuming US beef imports posed no disease risk, the impacts for Australian farmers from extra competition would be limited. "Australia has very competitive and relatively cheap beef production in comparison," Mr Humphreys told AAP. "Any beef that's coming in from the US is probably going to be targeting quite select segments of beef consumption, probably the cheaper cuts, produced beef products. "So it's not really competing with the premium Australian beef products that our beef farms produce." The low exchange rate of the Australian dollar as well as the high cost of transporting US beef also reduced the likelihood of it outcompeting homegrown products, he said. Local consumers are accustomed to leaner, higher-quality Australian beef and unlikely to be won over by fatty, hormone-injected American competitors. "I think there's not a lot of risk to Australian producers of beef, with this possibility of some limited US beef being imported into Australia," Mr Humphreys said. Australia's Department of Agriculture is reviewing its ban on Mexican and Canadian beef slaughtered in the US. Agriculture Minister Julie Collins said any decision to allow greater access for US beef would be based on science and evidence.
