Aussie banks shine in GFC

Australia’s major banks have emerged better than most from the global financial crisis, according to a new analysis released by KPMG.

The analysis, released this week, suggests that the nation’s major banks have been largely sheltered from the near-death experiences of many of their international counterparts.

It said that, as a result, Australia’s major banks had reported a year-end profit (before tax) that was only marginally down on 2008 — $22.5 billion compared to $22.6 billion.

Commenting on the research, KPMG head of banking said that throughout the tests of the global financial crisis, Australia’s major banks had continued to provide a rare ray of sunshine. They were now among the top banks in the world by market capitalisation and profitability.

But the KPMG analysis suggested that the outlook for the Australian banks was difficult to forecast, although there was cause for cautious optimism because their franchises remained strong and their competitive positions had been enhanced.