Why it matters: CBA’s record $10.2b profit elicited claims of super profits.
Analysts were unimpressed with the margin deterioration in CBA’s result.
The CBA boss and ABA say strong banks are important to the economy.
Commonwealth Bank’s $10.2 billion profit was denounced as “uninspiring” by banking analysts, undermining the Greens’ argument for a new super profit tax to rein in corporate oligopolies as bank margins suffer from further degradation.
In a further sign of mounting pressure on returns, ANZ on Thursday told brokers it will slash its cashback offer for refinancing customers from $4000 to $2000 as of August 26. ANZ is the only major lender left with such an offer, which some industry figures believe has led to unprofitable loans being written.
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Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter. Email Lucas at lucas.baird@afr.com
James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
