Funding costs cripple margins

Mr Norris told reporters yesterday that the high cost of attracting retail deposits will keep pressure on CBA’s retail banking margins and, in turn, borrowers.

Earlier this month, CBA raised its SVR 20 basis points above the RBA in a bid to improve its margins.

Speaking about the bank’s out of cycle rate move, Mr Norris said the decision was not made lightly, but the bank has an obligation to run the business in a sustainable way and balance the needs of stakeholders.