Household debt at a decade-low: Commonwealth Bank boss
Australian households are saving more and paying down debt as the economy grows faster than expected, according to the chief executive of the country’s largest bank.
Commonwealth Bank chief executive Matt Comyn said on Wednesday that 87 per cent of mortgage customers were now paying their scheduled repayments by an average of 35 installments in advance.
“When adjusted for redrawing and balancing savings, household debt is now back to levels not seen since 2015,” Mr Comyn said after announcing the bank’s results for the first half of 2025/26.
CBA customers’ offset and redraw accounts totaled $164 billion as of December 31; That’s up 5.6 percent from six months ago and up from $95 billion at the end of 2019.
CBA is Australia’s largest mortgage lender, with a 25 per cent share that has been stable for years.
The rate of mortgage borrowers delaying their payments for more than 30 days fell to only 1.1 percent in the first half, falling to the lowest level in the last two years.
CBA said debt levels were moderating as cost-of-living pressures continued to ease.
The bank said Australia’s economy was recovering faster and stronger than expected, but the impact of trade and tariff cuts was limited.
Households were spending more, including on discretionary items, and the economy was struggling to meet aggregate demand.
Persistent inflation is putting upward pressure on interest rates, and the Reserve Bank of Australia raised the cash rate to 3.85 per cent on February 4 for the first time since 2023.
CBA senior economist Belinda Allen expects the central bank to raise rates again in May, a view widely shared by others in the Australian market.
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