WA pushes up CBA mortgage arrears

by Miklos Bolza09 Nov 2017
Residential mortgage arrears at the Commonwealth Bank of Australia (CBA) have risen slightly due to financial pressures from the Western Australia property market.

In a quarterly trading update released yesterday (8 November), the bank’s 90+ days consumer arrears in home loans were reported at 0.59% as of 30 September this year, an increase from 0.54% in June 2016.

Excluding Western Australia, CBA’s 90+ days arrears sat far lower at 0.48% remaining around the same level as in the middle of last year.

On a quarterly basis however, 90+ days arrears actually dropped slightly from $2.24bn to $2.19bn between the June and September quarters.

CBA’s loan impairment expense levels have remained fairly steady over the past year, now sitting at 0.15% of the total gross loans and acceptances (GLAA) for the consumer sector.

Finally, volumes of home lending rose by 2.7% during the September quarter while the unaudited cash earnings increased by 6% to approximately $2.65bn during the same reported time period.

Australian Broker reached out to CBA for further elaboration, however the bank declined to comment.

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