The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher on Monday.
At the time of writing the banking giant's shares are up 0.4% to $67.98.
What is driving the CBA share price higher today?
Investors have been buying the bank's shares following the release of an update on its COVID-19 loan deferrals as of the end of September.
According to the release, the bank continued to see encouraging trends in the number of its home loan and SME lending customers who are able to return to making normal repayments on their loans.
This led to the total number of loan repayment deferrals reducing to 129,000 at the end of September. This compares to 174,000 in August and 210,000 in June.
The total loan balances on these deferrals has also fallen materially. It now stands at $42 billion, down from $59 billion in August and $67 billion in June.
The vast majority of its loan deferrals relate to home loans. Approximately 93,000 home loans were on deferral at the end of September, representing a balance of $37 billion.
What's next?
Pleasingly, management expects further significant reductions in October as initial temporary repayment deferrals continue to expire. It notes that 52,000 of the 93,000 home loans on deferral are due to resume repayments in October. These loans represent a balance of $20 billion.
However, while these trends are positive, Commonwealth Bank's CEO, Matt Comyn, acknowledges that the hard times are far from over and further support may be required for some customers.
He commented: "While these trends are encouraging, we are conscious that many of our customers still require our ongoing support, particularly in regions most affected by COVID-19, such as Victoria, which is reflected in requests for deferral extensions. We will continue to offer support and assistance to our customers as the economy recovers."
