[Brad Lockyer]

Australia’s four biggest banks – ANZ, Commonwealth Bank, Westpac and NAB – have added a collective $30 billion to their profits through increased mortgage payments as a result of successive rate rises to counter inflation.

Combined cash profit rose six per cent to $28.5 billion dollars, the best result since 2018 according to accounting firm PWC.

But 2023 may not be so rosy for lenders, as inevitably some borrowers will be unable to keep up with their repayments and will be forced to sell their homes.

While banks are quick to pass on any interest rate increases to borrowers, they are usually less inclined to pass on the rate to savers.

Do you think it’s fair the banks profit while we suffer higher prices?

[Sue Ridge]

Not only do banks raise rates as soon as the RBA makes its announcements, should the rates drop the opposite will happen; loans will remain for a time, investors rates will drop immediately. This is business as usual for any non-regulated industry. When the banks were deregulated in the ’80’s a number of things happened, overseas banks were allowed to enter Australia and the RBA’s rates were no longer compulsory but are a guide. Not only are the profits obscene (unless you hold shares) but banks have become arbiters of climate change and not making funds available to those industries that they believe are causing climate change.

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