There's no secret – Australia's major banks are squeezing as much as they can from their innocent customers. All it takes is a quick glance at the financial newspapers to figure out what activities they've recently been up to, and it doesn't look as though they are going to change their ways any time soon.
However, have you ever wondered just where the Big Four banks rank when it comes to pure profit? Of course, the word 'profit' and 'greed' can be loosely interchangeable, and new figures have revealed that Australia's major banks are among the most profitable in the world – not that their their customers ever see a lot of it.
All about the money
According to the Australia Institute executive director Ben Oquist, the Big Four enjoy profits equal to an enormous 2.9 per cent of GDP, which puts them at the top of the global pile when measured in pure profit. In simple terms, AU$2.90 of every $100 earned in Australia will end up as bank profit – more than 10 cents more than the second most profitable banks in China. Of course, there's nothing wrong with making money, as this is a core part of being a business in the first place, after all – but what kind of damage could these numbers be doing to the Aussie economy?
The Big Four enjoy profits equal to an enormous 2.9 per cent of GDP, which puts them at the top of the global pile when measured in pure profit.
"Excessive profits provide a drag on the economy and hurt consumers who pay higher margins on bank products. The Reserve Bank found the big four banks enjoy an implicit government subsidy worth up to $4 billion dollars a year," said Mr Oquist to news.com.au. "These super high profits combined with this taxpayer subsidy means extra scrutiny and potential additional regulation on the banks is not only warranted but required."
A bank with the customer at heart
Mr Oquist's comments come in the wake of a series of banking controversies with the Big Four bosses being called to front a Senate Committee shortly to explain a few things. At CAPE, we're a strong advocate of customer-owned banking, so every cent that we make goes straight back into our customers' pocket. whether this is through lower interest rates or fairer loan deals. After all, you're one of us, so we'll treat you as we'd want to be treated – as a valued, important customer.
To find out what we can do for you, be sure to get in touch with our team – we'll be happy to welcome you!
