Aussie Banks Post Record Profits

Australia’s top four banks have posted another year of record earnings, but that strong run could be at risk with interest rates close to a bottom, analysts say.

Westpac, Australia’s second-biggest bank by market value, on Monday unveiled an annual profit of A$7.1 billion (US$6.7 billion), marking its fourth-straight year of record profits.

Cost cutting, a drop in bad loans and a rise in retail deposits have helped Australia’s banks notch up another bumper year – National Australia Bank (NAB) and Australia and New Zealand Banking Group (ANZ) unveiled record profits last week.

“Commonwealth Bank of Australia (CBA) and Westpac have been riding the local economy, riding the property market and have done particularly well,” Lachlan Colquhoun, head of markets analysis at East and Partners, told CNBC. “Whether that will remain into next year; that’s the big question.”

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.