Mr Comyn said he was “confident and optimistic” about the economy, and the bank was expecting house prices would continue to rise, especially in Sydney and Melbourne, albeit at a slower pace than in late 2019.
“We’ve seen the housing market continue to improve over the first half, more recently we’ve seen improvements in core economic data such as unemployment,” Mr Comyn said.
The bank is tipping house price growth of about 6 per cent across the country this year, with stronger growth in Sydney and Melbourne on the cards. “I think that the stabilisation and resilience in the housing market will continue,” Mr Comyn said.
Another bright spot in the bank’s result was the virtual absence of new charges for customer refunds, which have battered the industry’s profits in recent years. CBA took a $30 million charge for wealth-related customer remediation in the latest half, compared to a $639 million hit in the June half.
Clime Asset Management senior analyst David Walker said the bank had delivered stronger revenue growth and wider profit margins than expected by the market, though he thought CBA’s shares were over-valued.
“This looks like a credit to the power of the CBA franchise,” Mr Walker said.
Bell Potter analyst TS Lim said CBA’s result had “shot the lights out”, and he believed the bank’s technology gave it a leadership position that was “miles” ahead of others.