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 FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
