cba greed is apalling, page-70

Wow the ignorance of people on this forum is amazing...

How many of you people so readily bashing the banks actually read the financial report of any of the majors? Or as I suspect did you just see the overall figure reported in the media and start whinging?

The Actual Results

For those that are interested i'd like to point your attention to westpac's result. Goto page 7 and you will see that infact over the last year their profits from their business/retail clients (You are the retail clients) has actually declined 8%. So where did they make all of that 6B.

Well over 80% of their increase in profits came from their institutional banking division (makes sense since over the period markets and economic activity settled down). Approximately 10% came from their New Zealand Bank and 10% came from their wealth management platform.

Home Loan Margins

The net margin on banks home loans was infact at multi-decade lows prior to the CBA move at just over 2%. This is down from about 3.5% in the mid 90's and this is largely why you don't have the likes of John Symonds on the news every night. They aren't there because this so called big rort is not such a big rort after all.

However instead of educating the population the politicians are out there trying to score political points but then this shouldn't surprise since when do politicians put the good of the nation before the good of their political career.

The Effects of playing Politics

The results of the politics being played with home loans means that banks have had to look to other areas to offset the falling profitability of their mortgage books. This has largely fallen on small businesses and credit cards/personal loans, etc (areas that doesn't get news coverage).

If there is any gouging going on atm its not the home loan clients. It is other areas of banking that have had to carry the weight from those that whinge because they over extended themselves and pressured the banks into having their home loan margins cut.

So while banks are far from perfect next time you go to criticize their profits you might spend a few minutes to get an idea where it is actually coming from first. As for complaining about account fee's and such it pays to do your research, there are plenty of different accounts out there with no/low fees and they are not hard to find you just gotta stop being lazy.