The Commonwealth Bank’s announcement of its $5.15bn profit, with similar announcements expected from the other major banks, is unlikely to be received well in the community.
After being told to expect stable interest rates until at least 2024, mortgage borrowers have been hit with a string of increases in the Reserve Bank cash rate, rapidly passed on by the banks. A small reduction in the Commonwealth’s margin between deposit rates and lending rates was not enough to prevent a 9% increase in profits.
