Recent record profits by Australian banks have triggered another wave of consumer anger.
But a leading financial analyst from QUT says healthy bank results are proof our economy’s in great shape.
Michele Harris reports.
Australia’s big four banks have just announced their biggest yearly profits, but not everyone is happy with the news.
A government survey has found one third of consumers are dissatisfied with their bank or other financial institution.
Poor customer service, hidden fees and charges and delays or non-delivery of services are the major concerns, but a leading bank analyst says we need to put the latest profits in context.
He says we need to look at the figures in perspective.
Dr William Wild, Finance Analyst: “Say that you were looking at buying an investment property – a house – and that was going to cost you $750,000. The profit that would be equivalent to the NAB profit would be you making $5,500 profit on your $750,000 investment profit.”
He also says the health of the banking sector affects the whole country.
Dr William Wild, Finance Analyst: “Banks are the canary in the coalmine of the whole economy.”
And with the Euro debt crisis deepening he says Australian banks are in a strong position globally.
Dr William Wild, Finance Analyst: “The Australian banking system is held up as one of the few in the world that has been well managed, well-regulated by the regulators and run prudentially by their management.”
But a recent report from The Australia Institute’s David Richardson, says that with a 90 per cent share of the lending market in Australia, banks are immune from competition and that’s not healthy for their customers.
Michele Harris, QUT News.