Commonwealth Bank reaches record highs in its margin lending book

24 January 2007

The Commonwealth Bank has extended its dominance in margin lending* with its book now over $7 billion across its two award winning products, CommSec Margin Loan and Colonial Geared Investments Margin Loan.

"In the last six months, our combined book has grown by $1.2 billion, so it’s clear that customers believe there is still some growth in the Australian sharemarket with increasing demand for margin loans," said Matt Comyn, General Manager CommSec.

"One of the keys to our success is the convenience for our customers to transact through their margin loan online through the CommSec platform.

"While some of the growth in our margin lending book can be attributed to record sharemarket returns, there is also clearly an increase in the number of people interested in margin loans. The CommSec margin loan book alone is growing at over 50 per cent a year, which is outstripping the 39 per cent growth of the overall margin lending market."

It is not just direct customers who are seeing the benefits of a margin loan. Financial planners are also keen to advise their clients of the options that a margin loan creates.

"Financial planners are also continuing to recommend margin loans to their clients as part of holistic wealth creation strategies," said Craig Keary, General Manager Colonial Geared Investments.

We are also seeing very strong growth in products like CALIA+**, which is an innovative debt solution for advisers.

"The success of margin loans is primarily due to its simplicity," said Mr Comyn. "It’s a popular way for investors to leverage their exposure to equities and managed funds"

The Commonwealth Bank has been offering its margin loans since 1996.



* The Commonwealth Bank offers margin loans directly to customers through the CommSec Margin Loan, and through financial planners and advisers with the Colonial Geared Investments Margin Loan. Both margin loans enable customers to borrow money to invest in shares or managed funds and claim the interest repayments as a tax deduction.

** CALIA+ is a flexible, all-in-one loan that enables customers to take advantage of the hidden equity locked up in your home and other assets. Colonial Geared Investments CALIA+ facility has been growing at nearly 70 per cent over the last 12 months.

For more information contact:

Bryan Fitzgerald
The Commonwealth Bank
P: (02) 9378 2663
M: 0414 789 649