The firm’s decline in total housing loans in July likely extended into August after the bank’s decision to tilt toward shareholder returns. That’s according to Michael Baumann, executive general manager for home buying at Commonwealth Bank.
Chief Executive Officer Matt Comyn is grappling with challenges to profitability amid the rare shrinkage in its mortgage portfolio. Banks are jostling for business amid pressure on margins as property prices rebound in an economy that’s showing signs of resilience. Commonwealth Bank and National Australia Bank Ltd. rewarded shareholders with buybacks last month as the ramp up in interest rates offset higher funding costs that remain a headwind to margins.
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