Inflation remains persistent: CBA announces 132,000 hardship payments

Customers are feeling the pinch from the cost of living crisis, with Australia’s largest bank revealing the huge number of people struggling to pay their mortgages.

Customers are feeling the pinch from the cost of living crisis, with Australia’s largest bank revealing huge numbers of Australians are falling behind on their mortgage repayments.

In its AGM on Wednesday, Commonwealth Bank chief executive Matt Comyn also warned inflation was staying “higher for longer than expected, impacting a number of Australian households.

He told shareholders the bank has offered 132,000 tailored hardship payment arrangements to customers over the past year, as the Australian economy was “still absorbing the shocks of the past few years”, noting while inflation was falling it remained persistent.

“Households are continuing to find it very challenging,” he said.

“However, the domestic economy remains fundamentally sound with several structural advantages that provide optimism for the future.”

CBA announced 132,000 Australians are falling behind on their mortgages. Picture: NCA NewsWire / Damian Shaw

Mr Comyn said while inflation is falling, it has proven persistent, and households are continuing to find it very challenging.

“We have the strength and stability to support customers when needed and play our part in stimulating economic growth by lending to productive parts of the economy.”

CBA’s cash net profit after tax was $9.8 billion, down 2 per cent on the previous period.

This is the result of lower lending and deposit margins driven by increased competition and

inflationary pressures on operating expenses, partly offset by volume growth and lower loan

impairment expenses.

While profits slightly fell, CBA announced a bumper fully-franked dividend of $4.65 cents a share, 15 cents higher than the 2023 dividends.

“We returned $8 billion to shareholders in dividends and share buybacks, benefiting the more

than 13 million Australians who own Commonwealth Bank shares directly or in their super funds,” Matt Comyn’s Chief Executive Officer said.