Big banks double competitors' margins

By Andrea Cornish | 31/08/2010 5:30:00 AM | 1 comments

Profits for mid-tier banks paled in comparison to the Big Four, which made $17.5bn during the year to March 2010.

Despite declining 4.7% to 22.5%, the major banks’ profit margins were still more than double Australia’s three regional banks which made 10.2% profit.

Figures released by the Australian Prudential Regulation Authority show that overall profits for the big four banks, regional and foreign lenders fell by 5% from $18.4bn for the year to March 2009.

APRA showed that all banks grew their home loans books.

Only subsidiaries and branches of foreign banks lifted their profit margins, gaining 5.8 percentage points to 22.8% during the year.

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Latest Comments

Total: 1 comment(s)

Country Broker on 31 Aug 2010 09:46 AM

Ok Now I get it , they had declining margins in the GFC and cut our up fronts and trailers, now with increasing margins , they are still maintaining the reductions !!!!!

What we need to do as brokers is SUPPORT where possible the non Banks and second teir who really want our business, keeping in mind our obligations under the NCCP !!! because at the moment the banks are really showing what they think of the brokers who send them business , that is not a lot really, particulary the two who DO NOT pay trailers in the first year .

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