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
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
