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Mortgage holidays could span 'next few years': CBA

Anastasia Santoreneos
·3-min read
Loan application with approved stamp on it.
Mortgage holidays could span 'next few years', says CBA boss. Source: Getty

Commonwealth Bank chief executive Matt Comyn has said some Australians and businesses will continue to require financial support from the bank for years as the economy battles the fallout from Covid-19.

Comyn told the bank’s 2020 Annual General Meeting on Tuesday that while total debt deferrals were down almost 40 per cent to $42 billion in September, some Australians would still need help.

“As Australia’s largest bank, we will play a significant role in Australia’s economic recovery over the next few years,” he said.

“The Federal Budget measures to underpin and grow employment should help to provide certainty and confidence for employers and employees so they can plan for the future.

“We also recognise that some Australians and businesses will continue to require support.”

So far, Comyn said more than 300,000 customers with deferred loans had received a call from the bank to discuss some support options.

“For those customers who are facing financial hardship or need more support, we are offering solutions tailored to their individual needs.”

Comyn said across the business, there had been strong volume growth, particularly in home lending and deposits.

"We achieved 25 per cent growth in transaction account balances, our strongest ever transaction volume growth, representing $45 billion in the first half of this calendar year," Comyn said.

"Our retail bank extended its lead in home lending, supporting customers with over $100 billion in new loans."

CBA logo revamped

The bank unveiled a new logo on Tuesday, with the black section of the diamond now replaced by a different shade of yellow. It’s the first time the bank has changed its logo in 30 years.

“[This is] a symbol of optimism fit for the future and one that represents the work we’ve done to be better, the work we still have to do, and the brighter future we are committed to helping Australia achieve,” CommBank’s chief marketing officer Monique Macleod said.

Remuneration addressed

CommBank has received criticism over its decision to increase executive pay while the bank’s share price remained significantly lower than it was in 2019.

Chair Catherine Livingstone addressed remuneration in her speech to the AGM on Tuesday, saying the new remuneration framework would help to drive a better risk culture and greater accountability.

“Our objectives, in making these changes, include: attracting and retaining exceptional talent; meeting the spirit of expected regulatory change; and more closely aligning management incentives with shareholders’ experience,” she said.

Shareholders will vote on the changes to the remuneration framework during the meeting

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