QBE or CBA, who’d lose more from a property crash?

Besides the Melbourne Cup and the footy finals, there are few things that set pulses racing in Australia quite like arguments over house prices. Rather than add to the abundance of analysis and opinion that’s flooded the media recently, let’s consider who has more to lose from a housing bust, Australia’s largest insurer or the world’s most expensive bank. On page 113 of Commonwealth’s annual results presentation, you’ll find a reassuring slide that shows the predicted losses from a three-year stress test. Assuming property prices eventually fall 32%, unemployment increases to 11.5% and the official cash rate falls to 1%,...

Besides the Melbourne Cup and the footy finals, there are few things that set pulses racing in Australia quite like arguments over house prices. Rather than add to the abundance of analysis and opinion that’s flooded the media recently, let’s consider who has more to lose from a housing bust, Australia’s largest insurer or the world’s most expensive bank.

On page 113 of Commonwealth’s annual results presentation, you’ll find a reassuring slide that shows the predicted losses from a three-year stress test.

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