Australia

Details

  • Industry: Financial Services, Banking
  • Type: Survey report
  • Date: 11/05/2012

Major Banks Survey

Major Australian Banks Performance Survey
KPMG's annual Financial Institutions' Performance Survey includes coverage of the major Australian banks.

Financial Institutions Performance Survey

Financial Institutions Performance Survey
KPMG's survey of financial institutions offers a detailed, authoritative review of performance and trends across key sectors of banking and finance.

Major Australian Banks Survey Half Year 2012 

The major Australian banks (the majors) are reassessing their business models in response to the structural changes taking place in the global and local financial services landscape. These changes are driven by a combination of forces including regulation, deleveraging by households and businesses, wholesale funding market volatility and developments in technology.
Major Australian Banks Survey Half Year 2012 cover
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The majors have posted a healthy profit for the 2011-2012 half year but lack of growth will be a focus for investors.

 

The majors’ cash profit was, after tax, $12.6 billion for the 2011-2012 half year – up 2.4 percent from the second half of last year’s cash profit of $12.3 billion.

 

Key insights

  • Reduced margins from an average of 229 basis points in H2 2011 to 221 basis points in H1 2012.
  • Continued cost containment as majors respond to pressure on revenues and increased costs of regulatory compliance.
  • Overall increase in the loan impairment charge from $2.5 billion in H2 2011 to $3.0 billion in H1 2012.
  • Stronger market results as global conditions improve and focus on supporting customer’s transactional business.
  • Weaker investment management results of $1.03 billion compared to $1.07 billion in H2 2011.
  • Increased capital levels in response to regulatory moves.

 

 

Banking

KPMG’s banking practice in Australia is well placed to help clients successfully navigate challenging times and capitalise on opportunities.

Banking Newsletter - April 2012

In this issue: FATCA, anti-money laundering, social media, customer and channel management, trading system transformation and workplace banking.