Original article by James Eyers
The Australian Financial Review – Page: 12 : 10-Apr-24

The Commonwealth Bank of Australia disclosed in its half-year financial results that it held $825bn worth of deposits in December, including $284bn in savings accounts. Victor German from Macquarie believes that unlike rival banks, a higher proportion of CBA customers use higher-margin online saving accounts rather than bonus saver accounts. Online accounts initially pay a higher interest rate, but the ongoing base rate is typically much lower than the rates offered with bonus saver accounts. German contends that this allows CBA to pay out relatively less interest to customers, which boosts its net interest margin and adds about $1.7bn to its annual profit.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG