Mortgages and Finance

Commonwealth Bank pushes deeper into business lending as competition with NAB heats up

Article Summary

Commonwealth Bank of Australia (CBA) reported a 9.1% increase in its business loan portfolio, amounting to $3.7 billion, for the first quarter of 2021. This strategic expansion targeted high-priority sectors such as infrastructure, healthcare, logistics, defense, and residential development, exceeding the industry average.

What This Means for You

  • If you are a CBA customer, you can expect more loan options and better terms in the aforementioned sectors.
  • Businesses in infrastructure, healthcare, logistics, defense, and residential development should prepare for increased competition, as more capital becomes accessible.
  • Investors might want to consider CBA shares, as this aggressive growth strategy could lead to higher profits.
  • Looking ahead, a potential downside could be an increase in loan defaults if the economy takes a downturn, as more capital in these sectors may result in riskier lending.

Original Post

CBA increased its business loan portfolio by 9.1% — a $3.7 billion rise — in the three months to March 31. That expansion, significantly above the industry average, came as part of a deliberate strategy to channel more capital into high-priority sectors, including infrastructure, healthcare, logistics, defence, and residential development.

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