CBA profit accelerates despite plunging investor loans

Rising interest rates and property tax changes have put a dent in home loan demand at Australia’s largest lender, but that didn’t stop profits rising to a new record high.Commonwealth Bank on Wednesday reported a full year profit of $10.98 billion, which was up 7% on the previous financial year and the biggest result ever recorded by an Australian bank.The surge in profit came despite decreased home loan demand following this year’s interest rate hikes and property tax changes that disincentivised property investment, which caused home prices to fall.Australia's largest lender Commonwealth Bank reported a record profit of almost $11 billion. Picture: GettyThe bank reported a 15% decline in loan application volumes since May, when property tax changes were unveiled in the federal budget, with investors representing the biggest chunk of this decline.Investor loan applications dropped by 28% since May, compared with a 9% drop in owner-occupier applications over the same period. However, CBA chief executive Matt Comyn said application numbers have stabilised in recent weeks.Despite the recent decline in activity, CBA’s total volume of home loans grew by 7.2% in the financial year to $6...