The CBA (ASX:CBA) share price slips as COVID loan support announced

Rolling COVID lockdowns continue to impact Australians across the nation.

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The Commonwealth Bank of Australia (ASX: CBA) share price is sliding in morning trade, down 1.5%.

This comes after CommBank reported it will increase its support for home loan customers in New South Wales impacted by the new COVID-19 lockdown measures.

Over the weekend, the New South Wales government mandated new restrictions for 3 local government areas – Fairfield, Liverpool and Canterbury-Bankstown. Following a surge in coronavirus infections, non-essential retail and construction activities will be shuttered until further notice.

What extra support is CommBank offering?

As the Australian Financial Review reports, CBA is offering 2-month deferrals on home loans to customers in the 3 highly-impacted local government areas and in the construction and retail sectors.

“I want to assure all of our customers across Australia who are today facing tighter restrictions that support is available right now,” CBA’s CEO Matt Comyn said.

The 2-month deferral offer is available to impacted customers as of today. According to the AFR, CBA already offers “fee waivers, refunds and three-month deferrals for businesses with loan facilities of less than $3 million and turnover of less than $5 million…”

The new wave of infections could put pressure on the CBA share price and that of the other big banks. Investors will be keenly watching to see if the share buyback many have been expecting – which would offer a tailwind to CBA’s share price – will go forward.

CBA share price snapshot

Up 34% over the past 12 months, CBA’s share price has outpaced the 21% gains posted by the S&P/ASX 200 Index (ASX: XJO).

Year-to-date, the CBA share price has continued to outperform, up 17% so far in 2021.

CommBank also pays a 2.5% dividend yield, fully franked.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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