Rate rise due to bank costs
The recent earning report from four different major banks have the similar reason. The similar themes of four major banks shows higher funding costs and not certain about the economic outlook of the world. The raising costs will be borne by the customers by paying higher interest rates. The rising costs especially is happening due to the political uncertainty.
Some major banks have shown bad debt charges which saw a cash earnings last time. One bank which showed most favorable result among the investors was ANZ Banking Group. The net profit of ANZ bank was about$1.3billion within a span of 3 years and about 37% last time. Another bank which had a good growth about 42% last year is Commonwealth Bank of Australia which has a profit of $6.1 billion.
The results of Westpac banking Corporation disappointed its investors by having just 27% increased in third quarter. Westpac Bank revenues declined and the margins even declined which disappointed the investors. The banks spoke about the growing pressure due to the credit worries from Europe and the economic recovery of US
