CBA half-year results: Deferrals almost gone, customers pile in on fixed loans

author-avatar By on February 10, 2021
CBA half-year results: Deferrals almost gone, customers pile in on fixed loans

The half-year results of Australia's largest bank points to a positive outlook for Australia's economy in 2021.

For the second half of 2020 to 31 December, Commonwealth Bank's (CBA) home loan book grew by 5.6%, adding an extra $13 billion in mortgages, which is 1.5 times the general market's growth. 

The number of deferred home loans from COVID - the subject of much focus over the year - are down to just 8% at 25,000 active deferrals, a far cry from the 158,000 CBA had in the first half of 2020. 

The figures are likely to alleviate fears of the potential 'mortgage cliff' Australia was facing at the deferral expiry date in March. 

CBA's fixed-rate mortgages saw massive levels of growth, up 38% in the back half of 2020 compared to the first six months, which had seen a 10% growth. 

Such growth in fixed-rate borrowing was anticipated, with NAB chief executive Ross McEwan telling banking analysts last year that fixed rates could increase their market share by more than 20-30%, due to the certainty fixed rates provide in an uncertain time. 

In response to various Reserve Bank rate cuts in 2020, CBA had cut fixed rate home loans by up to 100 basis points, but at times left variable rates unchanged. 

CBA deposits up again 

Commonwealth Bank's household deposits - including funds held in term deposits, savings accounts and transaction accounts - grew 16.5% in H2 2020, and the bank is now 75% deposit-funded.

This level of deposit-funding is up from 55% 12 years ago, despite the major bank offering historically low term deposit interest rates often below 0.40% p.a.

Term deposit rates offer poor interest rates on average all round, with a good portion of them having rates of 0% or near zero

And yet, Australia's household savings rate soared to a 46-year high in 2020, with household deposits increasing by $113 billion in less than a year. 

Profit falls but dividend results better than expected 

Commonwealth Bank's net profit after tax hit $3.89 billion and a statutory net profit after tax of $4.88 billion, 21% lower than the prior comparative period.

These are falls of 10.8% and 20.8% respectively, but according to the bank this was a better than expected result given the "economic backdrop characterised by historically low interest rates as well as the ongoing uncertainty associated with COVID-19, which ultimately led to the first national recession in almost 30 years."  

In an alleged sign of confidence, Commonwealth Bank increased its interim dividend to shareholders of around $1.45 per share from 98c in the previous half-year, although this around 75% of what it was pre-COVID. 

CEO Matt Comyn said that the bank is well positioned in terms of economic and fiscal strength, and will continue to support customers in the current climate. 

“The last six months have been very challenging for many Australians. We’re starting to see a marked turnaround in economic conditions which is of course very good news looking forward," he said. 

"That’s primarily been on the back of very effective management of the pandemic, and a variety of both government and business support measures that have been in place.

"From our perspective, we’ve been very focussed on making sure we’re continuing to support our customers and communities. We’ve focussed on strong operational execution which has delivered above system volume growth.

"We’ve continued to strengthen our balance sheet to ensure that we’re well prepared for a range of different economic scenarios, and we’ve also refreshed our strategy to ensure we have a bolder ambition for the future."

  • NAB will release its own first-quarter results on Tuesday 16 February 
  • Westpac will release its first-quarter numbers on Wednesday 17 February 
  • ANZ will do the same on Thursday 18 February 

Image source: Commonwealth Bank 


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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William Jolly joined as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.


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