Analyst Note| Nathan Zaia |
Wide-moat-rated Commonwealth Bank continued to take market share in home and business lending during first-quarter 2022, but it was no longer enough to offset margin pressure. Management noted net interest margins, or NIM, were considerably lower in the quarter, echoing comments from Westpac just weeks ago. We estimate that adjusted for remediation costs last year, pretax profit was down around 5% on the quarterly average of second-half fiscal 2021. Cash NPAT of AUD 2.2 billion is down 9% due to the release of loan loss provisions which boosted second-half fiscal 2021 earnings.