Next two weeks will show record bank profits
(25 October 2011 – Australia) Australia’s big banks are set to announce almost A$17.5 billion in collective full-year profits over the next two weeks, rounding a record reporting season for the sector.
The subdued lending environment - mostly as a result of consumers and businesses being more cautious towards debt - means revenue growth is the biggest challenge faced by the sector.
Despite signs of life appearing to have returned to the critical business lending market since the middle of the year, latest figures show commercial loans fell 0.9 percent in the year to August.
NAB kicks off the reporting season on Thursday, with analysts tipping a 19.7 percent increase in full-year cash earnings at A$5.4 billion. The following week ANZ will deliver an expected 11.6 percent increase to A$5.58 billion and Westpac is poised for an 11 percent increase to A$6.5 billion. The results cover the 12 months to 30 September.
Commonwealth Bank, which operates on a different reporting year, posted record cash earnings of A$6.84 billion in August, up 12 percent on a year earlier.
Despite signs of life appearing to have returned to the critical business lending market since the middle of the year, latest figures show commercial loans fell 0.9 percent in the year to August.
NAB kicks off the reporting season on Thursday, with analysts tipping a 19.7 percent increase in full-year cash earnings at A$5.4 billion. The following week ANZ will deliver an expected 11.6 percent increase to A$5.58 billion and Westpac is poised for an 11 percent increase to A$6.5 billion. The results cover the 12 months to 30 September.
Commonwealth Bank, which operates on a different reporting year, posted record cash earnings of A$6.84 billion in August, up 12 percent on a year earlier.
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