CBA records landmark asset financing growth 

The major bank noted that transport assets, such as cars had grown particularly strongly over the year, with cars up 30 per cent, heavy trucks up 27 per cent, and trailers up 26 per cent.

Speaking of the figures, CBA’s general manager of asset finance Chris Moldrich said organisations were placing orders in advance to make use of government incentives, such as the instant asset write-off.

He said: “The increased supply of vehicles to Australia has enabled businesses to take the opportunity to upgrade assets that they held on to for longer than expected during COVID-19.

“It’s also clear businesses were motivated to upgrade their eligible vehicles and equipment to take advantage of the federal government’s Instant Asset Write-Off Scheme before 30 June.”

Going green

The major bank flagged that borrowers were increasingly turning to asset finance volume to fund the purchase of electric vehicles (EV) and other ‘green’ measures.

CBA said EV financing rose 235 per cent in the past 12 months, which it partly attributed to its recently launched Green Vehicle and Equipment Finance offer that provided discounts of up to 1 per cent off the standard rate for ‘green’ purchases.

Mr Moldrich said: “Electric vehicles were the fastest growing vehicle type last financial year and Australian businesses are set to play an outsized role in EV adoption across the country.

“While more public sector investment in charging infrastructure is needed, particularly in regional locations, EV usage is growing strongly as the market matures and becomes more affordable.

“That’s helped by government concessions and an expanding choice of vehicles beyond luxury models.”

Mr Moldrich also attributed the significant growth in the lending for computer equipment, up 43 per cent, to businesses looking to protect themselves from cyber threats through updated technology.

He said: “In today’s current environment where cyber security is a top concern for businesses across the country, high levels of investment into technology reflect how businesses are choosing to respond to this growing threat.”

While asset finance lending has been growing rapidly, CBA funded a smaller amount of new mortgages in FY23 than previously, with $149 billion in new home loans written in FY23, down from $152 billion in FY22.

It also occurred as the major bank revealed mortgage broker originations fell at CBA, dropping to below 40 per cent of new mortgages.

[Related: CBA broker flows drop]