Big four expected to post record-breaking profits
(30 April 2013 – Australia) Banking analysts throughout Australia and New Zealand are expecting record-breaking profits from the big four Aussie lenders this week.
ANZ is due to report its half-year result today, Westpac on Friday, and National Australia Bank (NAB) and its subsidiary Bank of New Zealand (BNZ) on 9 May.
Commonwealth Bank of Australia (CBA)’s Kiwi subsidiary, ASB Bank, which follows a different reporting year, has already turned in a NZ$365 million (A$301 million) net profit for the six months to December, down 2 percent from the previous period's record result.
On a normalised basis - the bank's preferred measure - profit rose 7 percent.
Home loan borrowers moving from floating to fixed mortgages could also add some pressure to margins.
Reserve Bank of New Zealand (RBNZ) figures show that the proportion of borrowers fixing their mortgages had grown from 32 percent in September, to 36 percent in February.
Massey University banking expert Claire Matthews said the market remained competitive but had been quite settled recently.
'I'd really be expecting something similar to six months ago.'
She said the banks might decide to include a contingent liability for a major class action over penalty fees.
Across the Tasman, the Australian Financial Review reported that analysts expected the parents of the local banks to book record half-year profits of a collective A$13.2 billion (NZ$16 billion).
The Sydney Morning Herald reported ANZ and Westpac's cash earnings were expected to rise 7 percent from the previous corresponding period, while the underdog NAB was tipped to gain 2 percent.