Smith doubtful of profit repeat
(1 November 2010 – Australia) The chief executive officer of Australia and New Zealand Banking Group Mike Smith is doubtful the bank can repeat the bumper rise in profits announced last week, however has confidence the bank will increase its return on investment.
Mr Smith told ABC television over the weekend that an increase of that size is not going to be repeated.
"You don’t get a win like that every year, obviously, but the underlying income growth prior to provisions was also up, which was the encouraging sign from the results" Mr Smith added.
Earlier in the week ANZ revealed a record 53 percent rise in profits to A$4.5 billion.
Westpac Banking Corporation is expected to follow with a bumper result of around A$5.9 billion.
The major increase in bank profits has fuelled a political backlash, headed up by opposition Treasury spokesman Joe Hockey.
Mr Hockey called for Treasurer Wayne Swan to legislate bank charged mortgage rates to ensure they are not adjusted higher than Reserve Bank interest rate movements.
ANZ revealed a record $4.5 billion profit and this week it is expected that Westpac will also release a strong result, of about $5.9bn, which has fuelled a political backlash, led by opposition Treasury spokesman Joe Hockey.
Mr Smith said he was certain Mr Hockey had advocated an 'interest rate regime' on banks.
'It was all rather strange stuff and it was just very anti-reform,' Mr Smith said.
"You don’t get a win like that every year, obviously, but the underlying income growth prior to provisions was also up, which was the encouraging sign from the results" Mr Smith added.
Earlier in the week ANZ revealed a record 53 percent rise in profits to A$4.5 billion.
Westpac Banking Corporation is expected to follow with a bumper result of around A$5.9 billion.
The major increase in bank profits has fuelled a political backlash, headed up by opposition Treasury spokesman Joe Hockey.
Mr Hockey called for Treasurer Wayne Swan to legislate bank charged mortgage rates to ensure they are not adjusted higher than Reserve Bank interest rate movements.
ANZ revealed a record $4.5 billion profit and this week it is expected that Westpac will also release a strong result, of about $5.9bn, which has fuelled a political backlash, led by opposition Treasury spokesman Joe Hockey.
Mr Smith said he was certain Mr Hockey had advocated an 'interest rate regime' on banks.
'It was all rather strange stuff and it was just very anti-reform,' Mr Smith said.
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