CBA Shares Tumble as Provisions Rise, Taxes to Hit Mortgages

Commonwealth Bank of Australia shares headed for the worst drop on record after its chief executive flagged bigger provisions and analysts warned tax changes will hit growth in home loans.

The shares slumped more than 10% on Wednesday, wiping about A$28 billion ($20 billion) from its market value. The bank unveiled a A$200 million increase in collective provisions and a statutory net profit after tax of about A$2.6 billion in the three months through March, flat on the prior year.