Should you be annoyed or relieved that the Commonwealth Bank (ASX:CBA) reported a cash profit increase of 5% yesterday morning? It would be a refreshing result in an otherwise gloomy reporting period for Aussie financials. But the news might not actually be as good as it first looks.
August 14th, 2008 | Dan Denning | 3 comments | ContinuedAll Posts Tagged With: "cba"
Australian Banks Must Increase Fees or Expand Loans to Remain Profitable
The news that’s all the rage today is Westpac’s (ASX: WBC) $19 billion bid for St. George (ASX: SGB). But in an age of rising interest rates and credit contraction, how will Australian banks remain profitable… Fees. If profitability on loans is declining (and it is), the banks could make it up charging you more fees. The growth rate in bank fees has actually declined, if you peruse the data from the Reserve Bank.
May 13th, 2008 | Dan Denning | 1 comment | Continued
Commonwealth Bank Profits Hit By Credit Crunch
It’s a dour day for the Commonwealth Bank of Australia. One of Australia’s four big banks, Commonwealth Bank (ASX: CBA) reported the slowest profit growth in three years today. Net income was up a modest 8% to A$2.37 billion. No one will have much sympathy for Commonwealth Bank. It raised interest rates on variable home loans by 30 basis points after the Reserve Bank’s last quarter point rise.
February 13th, 2008 | Dan Denning | 3 comments | Continued