CBA profits are shaping up to be more than 20% above analysts’ expectations. Is this a sign of sunnier times ahead for the Big Four?
A revenue surge and a squeeze on costs is set to drive a large-than-expected $2bn interim cash profit for CBA.
But the bank is still dogged by speculation about downgrades stemming from bad debts, a poor performing asset management arm and its takeover of Bankwest.
And chief executive Ralph Norris is warning that operating conditions will “become increasingly challenging”, underscoring a downbeat outlook for the banking sector, given slowing credit growth and mounting lending losses.
How do you view CBA’s results? Are our big banks turning the corner? Or should we still be questioning their strength?