Aussie Banks Collect $3billion in fees from us
May 19th 2004, 9:12 pm
#1
Thread Starter
Joined: Aug 2003
Posts: 11,149
Aussie Banks Collect $3billion in fees from us
http://www.abc.net.au/news/newsitems/s1112515.htm
Bank fees cost customers $8.7 billion as profits boom
A new study has found bank customers paid $8.7 billion in bank fees last year, including $3 billion by Australian households, while the leading banks report record profits.
The fee revenue was driven higher by a 38 per cent increase in credit card fees, which the Reserve Bank figures showed cost customers $604 million last year.
Australia's four major banks reported a record profit season in their half-year reports, accountants PricewaterhouseCoopers (PwC) said earlier this month.
Cash earnings by the big four - NAB, Commonwealth Bank, Westpac and ANZ - totalled $5.87 billion compared to $5.6 billion in the first half of 2003.
The peak body representing banks has defended the fees collected from Australian households and businesses last year.
Counter claims
The Australian Bankers' Association says people are still paying less for banking than they were seven years ago.
Chief Executive Officer David Bell says while fee revenue has gone up, banks are collecting far less in interest rate margins.
"The report shows that the rate has been consistent with other years and in fact it's been in line with volume growth so that is a consistent message which has occurred over the last few years," he said.
The Federal Opposition is demanding a bigger role for the consumer watchdog to monitor and report on bank fees, after what it was described as an obscene hike in the charges imposed on bank customers.
Labor's Stephen Conroy says the extra impost is hurting struggling families.
"These are staggering increases, you've seen a 38 per cent increase in one year in credit card fee revenue,"
"This is while credit card interest rates are at exorbitant levels, where they didn't pass the interest rate decreases on in the last few years and it just shows that the Howard government are sitting back and letting the banks gorge themselves at the expense of Australian households."
Bank profits
Scandal-hit NAB reported cash earnings before significant items are down 9 per cent, despite a 16 per cent increase in the bottom line profit to $2.17 billion.
The Commonwealth Bank of Australia reported a net profit of $1.24 billion in the six months to December 31, 2003, a 3 per cent increase over the same period a year earlier.
ANZ has booked a record first half net profit of $1.39 billion, up 22 per cent over the previous corresponding period.
Westpac reported a record first-half profit on net income of $1.23 billion in the six months that ended March 31, from $1.05 billion dollars a year earlier.
Bank fees cost customers $8.7 billion as profits boom
A new study has found bank customers paid $8.7 billion in bank fees last year, including $3 billion by Australian households, while the leading banks report record profits.
The fee revenue was driven higher by a 38 per cent increase in credit card fees, which the Reserve Bank figures showed cost customers $604 million last year.
Australia's four major banks reported a record profit season in their half-year reports, accountants PricewaterhouseCoopers (PwC) said earlier this month.
Cash earnings by the big four - NAB, Commonwealth Bank, Westpac and ANZ - totalled $5.87 billion compared to $5.6 billion in the first half of 2003.
The peak body representing banks has defended the fees collected from Australian households and businesses last year.
Counter claims
The Australian Bankers' Association says people are still paying less for banking than they were seven years ago.
Chief Executive Officer David Bell says while fee revenue has gone up, banks are collecting far less in interest rate margins.
"The report shows that the rate has been consistent with other years and in fact it's been in line with volume growth so that is a consistent message which has occurred over the last few years," he said.
The Federal Opposition is demanding a bigger role for the consumer watchdog to monitor and report on bank fees, after what it was described as an obscene hike in the charges imposed on bank customers.
Labor's Stephen Conroy says the extra impost is hurting struggling families.
"These are staggering increases, you've seen a 38 per cent increase in one year in credit card fee revenue,"
"This is while credit card interest rates are at exorbitant levels, where they didn't pass the interest rate decreases on in the last few years and it just shows that the Howard government are sitting back and letting the banks gorge themselves at the expense of Australian households."
Bank profits
Scandal-hit NAB reported cash earnings before significant items are down 9 per cent, despite a 16 per cent increase in the bottom line profit to $2.17 billion.
The Commonwealth Bank of Australia reported a net profit of $1.24 billion in the six months to December 31, 2003, a 3 per cent increase over the same period a year earlier.
ANZ has booked a record first half net profit of $1.39 billion, up 22 per cent over the previous corresponding period.
Westpac reported a record first-half profit on net income of $1.23 billion in the six months that ended March 31, from $1.05 billion dollars a year earlier.
May 19th 2004, 9:22 pm
#2
Wishing on a star...
Joined: Nov 2003
Location: UK.
Posts: 539
I am with Challenge (Westpac). I pay $5 a month for the pleasure of having only 8 free transactions. Time to change banks, methinks. Any recommendations?
May 19th 2004, 9:30 pm
#3
Happy Daddy
Joined: Aug 2003
Location: Dodgey West Midlands , UK
Posts: 1,312
Re: Aussie Banks Collect $3billion in fees from us
It's nice to see that t he banks in Oz are the same as those in trhe UK.
Bye
Mark
Bye
Mark
May 19th 2004, 9:33 pm
#4
Happy Daddy
Joined: Aug 2003
Location: Dodgey West Midlands , UK
Posts: 1,312
Re: Aussie Banks Collect $3billion in fees from us
Hiya bondipom,
send a note to Richard Branson, I think you need a Virgin bank out their! A little bit of competition might shake things up!!!
Bye
Mark
send a note to Richard Branson, I think you need a Virgin bank out their! A little bit of competition might shake things up!!!
Bye
Mark
May 19th 2004, 9:46 pm
#5
Thread Starter
Joined: Aug 2003
Posts: 11,149
Re: Aussie Banks Collect $3billion in fees from us
Originally posted by markeh
Hiya bondipom,
send a note to Richard Branson, I think you need a Virgin bank out their! A little bit of competition might shake things up!!!
Bye
Mark
Hiya bondipom,
send a note to Richard Branson, I think you need a Virgin bank out their! A little bit of competition might shake things up!!!
Bye
Mark
May 19th 2004, 10:25 pm
#6
Guest
Posts: n/a
Originally posted by cherry6
I am with Challenge (Westpac). I pay $5 a month for the pleasure of having only 8 free transactions. Time to change banks, methinks. Any recommendations?
I am with Challenge (Westpac). I pay $5 a month for the pleasure of having only 8 free transactions. Time to change banks, methinks. Any recommendations?
and Unlimited HSBC ATM transactions, except there aren't many around
