The majors continue to produce strong results despite European uncertainty impacting global markets and consumer confidence, and the considerable volume of regulatory change currently impacting the sector.
- Continued reduction in the loan impairment charge of 36.9 percent to $5.3 billion compared to $8.4 billion in 2010.
- Cost containment across the board as the majors look to productivity increases to offset falling revenue growth.
- Cost to income ratios improved by an average of 0.4 percent from 45.5 percent in the prior year to 45.1 percent in 2011.
- Stable margins although an underlying improvement in the second half of the year compared to the first half.
- Strong performance in the New Zealand businesses as loan impairment charges reduce and interest margins improve as customers switch to higher variable rates.