The Commonwealth Bank sets aside a large pile of cash to cover expected COVID-19-related losses, as Australia’s biggest home lender warns of a potential 32 per cent house price crash in a worst-case “prolonged” economic downturn.
Key points:
- CBA announces an unaudited profit of $1.3b for the first three months of 2020
- The bank is setting aside $1.5b for potential coronavirus-related losses, bringing total credit provisions to $6.4b
- CBA says it has received 144,000 requests for home loan repayment deferrals and 71,000 for business loans
In its third-quarter trading update, CBA announced it had set aside $1.5 billion to cover potential losses from the COVID-19 recession, taking its total provisions for bad and doubtful