CBA righting itself (distribution phase)

Profits down 21pc

Home lending approvals are up very strongly (+32 per cent over the year to 1H21), according to Commonwealth Bank's latest investor preso. 

Although that's nothing compared to the boom in CommSec accounts, which doubled from a year earlier, with a super-boom in customers using apps to trade stocks...wow!

Note that the number of stock trading users are up by 230,000, but the volume is only up modestly.

This is what was traditionally known as the distribution phase of the stock market cycle, but unfortunately new entrants aren't typically aware of stock market cycles, let alone that market tops are a process of distribution, rather than a specific point in time. 

Source: ASX

Home loan deferrals fell to just 1.4 per cent of the portfolio, having declined by more than 80 per cent from the peak.

And interest-only loans now comprise just 15 per cent of the portfolio, so more borrowers than ever before are paying down mortgage debt, taking advantage of lower mortgage rates. 

Kudos to the regulators here; interest-only lending will effectively be a non-issue going forward, and existing debts are being comfortably paid down too. 

Bank profits were well down as anticipated due to loan impairments and low interest rates impacting margins, but the result was fairly decent against market expectations, and the dividend was back up by about half to $1.50 (just a slight disappointment here). 

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In other news, job ads continue to improve, up to a higher level than a year ago. 

Indeed reported very similar results for job postings on its own data series, which is good to see.

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Home loan product offerings hit a new record low today, with Greater Bank offering 2-year fixed rates from 1.69 per cent.