Asset quality indicators all soured at Commonwealth Bank over its June 2024 full year. And will continue to do so.

“Arrears will rise” this year, Matthew Coymn , the bank’s CEO told an investor briefing yesterday.

“And people will do it much, much harder.”

Home loan arrears of 30 days or more increased to 1.30 per cent, from 0.92 per cent at June 2023.

90 day arrears increased to 0.65 per cent atb June 2024 from 0.47 per cent. The current level of 90 day arrears is at the historical average the bank said.

Arrears for owner occupiers are markedly higher than for investors, as the higher cost of living impacts many borrowers.

Credit card arrears of 90 days or more increased to 0.74 per cent at June 2024, up from 0.55 per cent a year before.

The increase in troublesome and impaired assets to $8.7 billion from $7.1 billion in FY2023, “was primarily driven by downgrades of a small number of single name exposures across a few sectors and restructures and arrears in the home lending portfolio” the bank said.

Curiously, CBA’s total impairment provisions remained relatively stable at $6.1 billion increasing slightly from $5.950bmillion in FY23.