Commonwealth Bank of Australia (CBA) has acknowledged that some carbon-exposed communities may not have a future, as the bank defended its lending to energy projects and highlighted the challenges posed by the country’s inflationary environment.
Speaking at the bank’s annual general meeting in Adelaide on Wednesday, Chief Executive Matt Comyn warned that Australia was facing a “higher for longer” inflation scenario. He revealed that CBA had provided 132,000 tailored hardship packages over the past year as households continue to grapple with financial pressures.
Comyn noted that while inflation was slowly easing, it remained stubbornly high, adding that the Australian economy was still “absorbing the shocks of the past few years.” He remarked, “Households are continuing to find it very challenging,” but emphasized that the domestic economy remained fundamentally sound, with several structural advantages.
As Australia’s largest bank, with nearly 17 million customers across its Australian and New Zealand businesses, CBA has pledged its continued support for regional communities. Comyn assured shareholders that none of the bank’s branches would close “until at least the end of 2026.” The bank has adapted some branches to serve customers in the morning, before transitioning to online or phone support in the afternoon, in response to increasing demand for digital banking services.
“We will remain focused on supporting our customers, investing to protect the community, and providing strength and stability to the broader economy,” Comyn said.
However, CBA’s decision to shut its Bankwest branches in Western Australia, consolidating the brand as an online-only operation, drew criticism. The bank justified the move as a natural response to its customers’ growing preference for digital banking.
The lender also faced tough questions over its restrictions on transactions to cryptocurrency platforms, including Binance, which have been implemented to curb fraud. “It’s simply a matter of fact that many people who are scamming Australian residents are using crypto rails to exit the money,” Comyn explained. He acknowledged that the rules had caused inconvenience for some customers, but stressed that they had significantly reduced scam-related losses over the past year. “I regret the inconvenience at times, but the benefit to customers has been substantial,” he added.
The meeting also saw a heated discussion over CBA’s lending to fossil fuel companies. The bank has pledged to stop lending to companies in the fossil fuel sector that do not have a climate transition plan aligned with the Paris Agreement. Despite this, the bank’s Chairman, Paul O’Malley, confirmed that CBA would continue to lend to gas companies, stating, “There are essential industries that will need support as part of the broader energy transition.”
CBA’s approach to balancing climate commitments with lending to energy and resources projects remains a point of contention among shareholders. As the global shift towards sustainability intensifies, the bank’s role in financing both traditional and renewable energy projects will continue to be closely watched.
