Commonwealth Bank CEO Sees Positive Tailwinds Driving Recovery

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Australia’s economic recovery will build in the coming months as the jobs market recovers and banks continue to wind back pandemic-era provisions, said Commonwealth Bank of Australia Chief Executive Officer Matt Comyn.

The head of Australia’s largest bank said he’s seeing “very strong” economic data, including Thursday’s decline in the country’s unemployment rate, and figures showing loan deferrals are declining.

Commonwealth Bank CEO Sees Positive Tailwinds Driving Recovery

“This should give us cause for optimism in the months ahead,” Comyn said at a conference on Friday. “There are a lot of positive tailwinds that are going to offset” remaining uncertainty as the world navigates the rollout of Covid-19 vaccines.

Commonwealth Bank CEO Sees Positive Tailwinds Driving Recovery

The relative containment of the coronavirus in Australia is boosting confidence and encouraging consumer and businesses to lift spending. Banks from Australia & New Zealand Banking Group to Westpac Banking Corp. this week reported an improvement in bad loan provisions, capital buffers that had swelled last year with the pandemic.

“It’s been a remarkable recovery,” Comyn said. “The numbers are looking extremely good,” he said, referring to declining home-loan deferrals.

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