Low growth a threat to Aussie bank profits

Australian banks enjoy stronger risk-adjusted profitability than other banks in the region but an extended period of low growth ahead is set to make it harder to earn a crust.

Low growth a threat to Aussie bank profits

Australia’s major commercial banks continue to report some of the strongest profits among their global peers, according to Moody’s Investors Service.

They recorded an average pre-provision income to risk-weighted asset ratio of above 3% in the first half of 2013, according to Moody’s, compared to 2%-2.5% for banks in Singapore, Hong Kong, UK and the US.

“Other banking systems in Asia like in Indonesia for example might offer the highest returns,...

To continue reading, please login or register for free

Click for more on: australia | banking

Print Edition

FinanceAsia Print Edition


  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...