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.
- 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.