Half-year bank results see decline
Half-year major bank result analysis by Deloitte shows the banks are still struggling to make growth against the headwinds.
Aggregate cash profit declined by 4.1 per cent to $14.5 billion, while total income declined by 4 per cent to $41.1 billion.
Total operating expenses went down three per cent to $18.9 billion, and the total refund and remediation bill since 2017 had stood at $5.6 billion.
Paul Rehder, Deloitte Australia Banking Leader, said large scale remediation programs, intensifying regulation and increased risk management because of the Royal Commission were the common themes of Australia’s major banks half-year results.
“Looking ahead, the banks are accelerating their focus on productivity and the ‘core’ and continuing to keep their operating expenses down,” Rehder said.
“All four chief executive officers (CEOs) announced simplifying their operations and offers, and where appropriate continuing their demergers and divestments.”
Steven Cunico, Deloitte financial services treasury advisory lead and author of the report, said while overall results for the banks appeared largely flat, the underlying detail showed divisional performance did vary.
“All four major banks experienced weakness in their retail businesses,” Cunico said.
“However, they were able to offset this by recording growth in their business banking, institutional banking and New Zealand operations.”
AUTHOR
Chris Dastoor
Recommended for you
The financial advice industry has enjoyed another week of strong new entrant numbers, totalling nearly 40 for the past fortnight, thanks to the latest exam passes.
Momentum Media’s wealth publishing network – comprising InvestorDaily, ifa, SMSF Adviser, Money Management, and Super Review – is proud to launch the annual Australian Wealth Management Awards.
Investment information firm Equity Story has signed a binding heads of agreement to acquire South Australian financial advisory and stockbroker Baker Young for $4.2 million.
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
