CBA lifts bad debt buffers as quarterly profit rises

Commonwealth Bank said inflation and interest rate rises will weigh on household spending and business activity, as it reported a $2.7 billion cash profit for the March quarter, up 4 per cent on the prior year, and lifted its bad debt buffers amid heightened geopolitical and economic uncertainty.

The pre-market update did not mention Tuesday night’s federal budget, which has removed negative gearing tax benefits for new investors in existing properties. Analysts say this will create headwinds for credit growth from housing investors.

Source: https://www.afr.com/companies/financial-services/cba-lifts-bad-debt-provisions-analysts-flag-investor-lending-pressure-20260512-p5zw35