Banks rake in $14 billion, warn of a tough road ahead (unless you’re a bank)
While Australians were struggling with increasing mortgages, the banks were raking in huge profits with Macquarie announcing a $5.1 billion annual profit and ANZ posting a $3.8 billion half year profit.
Macquarie's Shemara Wikramanayake (Pic: Macquarie).
The Macquarie result was up 10 per cent on the previous year’s earnings, while ANZ profit was up 12 per cent on the previous half year.
It follows the NAB half year result yesterday of $4 billion and was the first of the major banks to lift its mortgage rates following the Reserve Bank’s shock hike in the cash rate earlier this week.
The Commonwealth Bank raised its mortgage rates today.
Macquarie also revealed one its executives, commodity boss Nick O’Kane, earned a massive $57 million for the year.
But the banks are not overly enthusiastic about the current environment. ANZ, in particular, was playing down the outlook despite its strong result.
ANZ chief executive Shayne Elliott said the next six months would be more difficult than the last six months, but said the number of people in financial difficult was still low.
“Competition in retail banking is as intense as it has ever been, both in Australia and New Zealand,” Elliott said.
“We understand that sustained higher inflation and interest rates creates further challenges for some households and businesses across the economy.”
Macquarie Shemara Wikramanayake referred to a “less certain market and economic backdrop”.
“We continue to remain a cautious stance with a conservative approach to capital, funding and liquidity that positions us well to respond to the current environment,” she said.
Macquarie’s shareholders will earn a final dividend of $4.50 a share (franked to 40 per cent), a significant increase on the $3.50 paid in 2022.
ANZ would pay out an interim dividend of 81 cents a share.
