Big Four Profits now equal size of a small country
Following the CBA’s record profit recently, ANZ has reported an unaudited cash profit for the three months to December 31, 2012, of $1.53 billion – up 6.2% on the same period in 2011.
The value of the major banks has reportedly risen by more than $90 billion in the past year, to a combined value of $340 billion (a value worth more than Singapore’s entire economy), yet they continue to refuse to pass on interest rate cuts in full.
ANZ CEO, Mike Smith, says he believes ANZ has produced a solid business performance consistent with expectations provided at the time of the 2012 full year results and says positive share outcomes in retail deposits and mortgages helped boost the bank’s bottom line. The lender’s market share increased in key sectors including traditional and affluent banking and household mortgages and deposits and lending average assets increased 7.6%.
“Initiatives to manage costs and margins helped to sustain a good performance in the Australian Division…In International and institutional banking, expenses were well controlled, however margins remain under pressure, albeit less than in 2012, while favourable trading conditions and increased customer volumes saw a strong performance in global markets. The environment for wealth remains subdued and we continue to manage costs while pacing investment in transforming the business.”
The banks stated they could not pass on the full interest rate drops because of increased funding costs, however funding costs have reduced. Now is the time to reduce rates outside RBA decreases. When will the banks realise that the general public find these profits obsene. These profits are coming out of your and my pockets.
John Whitten can help you to get a home loan, reassess your current loan, refinance your existing loan and consolidate debt and free up equity. John can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).
