Headwinds blowing fiercely for the banking industry
Australia’s four major banks have released results showing returns remain under pressure for the foreseeable future as a result of remediation-related cost increases and slower income growth, with headline cash earnings dropping 5.5 per cent year-on-year to $29.5 billion after the record $31.2 billion delivered in 2017.
PwC’s 2018 Major Banks Analysis found return on equity has fallen to 12.5 percent, the lowest since the GFC, as significant customer remediation and regulatory, compliance and restructuring costs materialised. This is despite bad debt expenses hitting record lows, some momentum in business credit growth, and efforts to improve productivity.
PwC Australia’s Banking and Capital Markets Leader, Colin Heath says the full year results show the impact of ongoing economic, competitive and conduct challenges, especially the impact of ongoing regulatory reform. Headwinds blowing fiercely for the banking industry […]
