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Thursday, 9 November 2017

Commonwealth flames

Faster, higher...stronger?

A result that will surprise a few observers, with the Commonwealth Bank of Australia (ASX: CBA) reported unaudited cash earnings of ~$2.65 billion for the quarter, up by +6 per cent on improved margins. 

There were seasonal declines in personal loans and credit card arrears.

An interesting point of note was that 90+ day home loan arrears were tracking at 0.59 per cent, marginally lower from the preceding quarter. 

CBA noted that 90+ day home loan arrears have declined slightly over the past few years to 0.48 per cent when the state of Western Australia is excluded.

It's been a rough patch for the CBA and its reputation following the money laundering scandal.

But this was an emphatic result, and the share price blazed to back above $80, having traded as low as $73.20 in September.