CBAs net interest margin across its whole loan portfolio was indeed 1.99% at December 2024. Net interest income was $23 bil and 90.1% of CBAs income in total - fees and commission forming the remaining 9.9%. Statutory and cash net profit were just under $10 bil.
I would suggest that CBA should not shut up shop. It achieves economies of scale and efficiencies which make it 'arguably the most expensive retail bank in the developed world' and perhaps 'the most expensive global bank share of all time'. (ie: share price compared to fundamentals)
ZIP uses a cash transaction margin and reports it at 3.6%. This is the closest you could get to comparing profitability levels of lending activities with a bank or other BNPL participants. ZIP does not make profit and it is because its margins are too thin, expenses too high and competition too intense. Maybe if it borrows or raises some significant money and muscles up, particularly by diversifying its income stream and perhaps tries to reduce its costs further, it would have a better show of demonstrating that it could be a viable business.
Larry said that ZIP 'could be the next CBA' although he has now sold the majority of his ZIP shares.
ZIP Price at posting:
$2.43 Sentiment: Sell Disclosure: Not Held
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