Australia’s CBA posts record profit, shares drop

Sound performance: People use Commonwealth Bank of Australia ATMs in Sydney. The country’s largest lender says cash profit climbed to US$3.5bil (RM15.3bil) in the six months to Dec 31 and declared an interim dividend of US$1.45 (RM6.39) per share. — Reuters

SYDNEY: Rising interest rates helped Commonwealth Bank of Australia (CBA) deliver record profits but shares of the lender dropped on headwinds facing its mortgage business and concerns that its margins have peaked.

Australia’s biggest lender pointed to tailwinds ahead as loan impairment expenses increased by A$586mil (US$409mil or RM1.8bil). Business credit growth also slowed, reflecting inflationary pressures, rising interest rates, supply chain disruptions and a decline in house prices.