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The Commonwealth Bank has reported 7 per cent home loan growth on the way to a $4.3 billion half-year profit.
The bank announced yesterday that it had posted $380 billion of income from the interest on home loans for the six months to 31 December 2013.
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This 7 per cent year-on-year growth came “despite intense competition” and was “largely driven by above-system growth in the domestic banking businesses”.
CBA also revealed its share of the home loan market had increased from 25.1 per cent to 25.3 per cent during the 12-month reporting period.
It also grew its share of the ‘other household lending’ market from 16.6 per cent to 18.2 per cent, while its share of the New Zealand home loan market remained steady at 22.1 per cent.
CBA executive general manager for retail products and third party banking, Lyn Cobley, said brokers and home loan customers were very important to the bank.
“Brokers provide an excellent service to customers in guiding them through the home buying process and there is no reason to believe this will change, nor will our support for and engagement with the channel,” she told The Adviser.
“For customers, the home buying process is a landmark experience in their lives and our role as their lender is critical in enabling them to buy their property.”
Chief executive Ian Narev said the bank was cautiously optimistic about the economic environment for this year, partly due to “positive activity in the housing sector”.
Mr Narev said housing was the only sector other than resources to have recorded any meaningful increase in investment.
CBA's $4.3 billion half-year profit was 14 per cent higher than the half-year profit 12 months previously.
