I listened to the head CBA economic advisor presentation and their unemployment target is peak 10%, in line with RBA numbers. Also showed some great data in the fall in discretion spend, services fell and most of goods was groceries.
This will impact loan origination in two ways.
1. Demand for loans for travel, cars big ticket items has dropped already
2. Unemployment rates will cut into the size of market that can qualify for a new loan (under NCCP)
This will start to play out in June Quarter numbers, get a clear picture by December quarter when government stimulus is wound back.
Remember this SP is a based on a growth stock as it makes zero profit.
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(20min delay)