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