According to KPMG outlook for key Aussie banks remained positive despite high interest rates & severe drought that are beginning to hit Australian economy.
Outlook for key Aussie banks remained positive despite high interest rates & severe drought that are beginning to hit Australian economy. A yearly survey of main Australian banks by KPMG, a leading professional services company, indicates banks' scramble to lead customer related services & analyzes the profits of leading Australian banks including National Australian Bank (NAB), ANZ Banking Group, Commonwealth Bank of Australia, Westpac Banking Corp. & St. George Bank, reports The Age.
Andrew Dickinson, KPMG partner, said that if economy of Australia keeps performing like this & demand continues to increase, outlook for Australian banks would stay favorable.
The survey also indicated that average equity returns increased to 21 % surpassing banks' 20 % benchmark, thus, showing no indication of the benign environment for credit worsening in near future.
Business lending surged by 16.4 %, while consumer lending increased by 11.8 %. Income from net interest rose by 8.1 % to US$ 29.8 Billion with overall asset growth accounting to 12.5%.
Drought & high interest rates are beginning to influence but the impact will probably be negligible in near future, added Dickinson.
"Banks are making huge profits through delayed payments, early termination and administration charges on retail banking products like credit & debit cards and home & personal loans," said an analyst at RNCOS.
Recent profit reports of four leading banks of Australia showed a total profit of around US$ 12.2 Billion. NAB revealed a record US$ 4.4 Billion profit in 2005. ANZ revealed a profit accounting to US$ 3.69 Billion; Westpac announced a record US$ 2.071 Billion & St. George Bank announced a US$ 1.048 Billion in profits, joining the Billion $ profit club.
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