Wednesday, September 24, 2008

Australian banks were creaming it in as they pushed up rates

54.8 cents profit in every dollar earned!

David Uren in today's Australian:

"AUSTRALIA'S major banks were enjoying record profit margins when they cried poor and lifted mortgage interest rates independently of the Reserve Bank.

Official figures show the profit margin for the major banks was 54.8 per cent in the March quarter, resulting in $1 profit for every $2 in interest and fee income they charged.

The banks' profit margin during the quarter was more than double the long-term average return of 26.9 per cent."

UPDATE: The Australian Bankers Association responds.