Major Banks: Tensions rising
The Australian major banks reported another strong financial result for the 2014 full year, although tensions are rising as a result of the regulatory uncertainty from the Financial System Inquiry, likely future increased impairment charges, as well as structural and technological changes that will significantly impact the banking industry.
According to a new report issued by KPMG today, the major banks reported a record cash profit after tax of $28.6 billion for the full year, up 5.7 percent on 2013, aided by a buoyant housing market, historically low impairments and improved funding conditions.
Looking ahead, against the backdrop of the Financial Inquiry and G20 recommendations – which are likely to call for higher levels of capital – supporting economic growth, achieving higher returns and confronting new sources of competition and digital disruption, will present significant challenges for the major banks in the future.
For all you need to know on the major banks’ results (in approximately 3 minutes), view my video, read the press release.
Head of Banking