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I was wanting to read this article but it's limited to the daily email subscribers. Are articles such as this 'time-locked' so that they become an open read after say 12 hours?
I'm a ssupporters incentive 2020 and value the content and comments presented in an ad free form.
Bank profits have fallen to their lowest level in 18 months as they put more aside for possible bad debts and lending growth stalled, denting margins.
KPMG's quarterly banking survey shows sector profits for the three months ended March were $1.54 billion or 13 percent down on the December quarter's $1.77b, 11.6 percent lower than the same quarter a year ago, and the lowest since the September quarter 2021.
The key driver of the profit fall was an increase in the money set aside for bad and doubtful debts, which surged 10 percent to $2.96b in the previous quarter, with mortgage lending falling 28 percent, while the levelling out of interest rate rises saw margins fall. Link
Hi Lou, in summary, over 2023, arrears and delinquencies (mortgage, credit cards, BNPL, personal loans) have started to rise from a very low base. It represents a warning sign if delinquencies continue to deteriorate, but they are of no concern at the current low levels.
Have their profits really dropped ? Provisioning for possible future delinquencies is merely shifting funds to another part of the ledger, these delinquencies have not occurred .
When you are under pressure for reporting "excessive profit" a bit of accountancy magic ...... Call me cynical but ?
"The head of the Banking Association, Roger Beaumont, said many households had cushioned themselves from the impact of rising rates and a slowing economy by getting ahead in mortgage repayments."
What a load of toss. Getting ahead in mortgage repayments? (Figures don't show this at all!) "Households" - i.e. those with mortgages (many don't, the disgusting use of "we" when "us" and "them is the correct term!) - would be better to keep a big wodge of cash handy to smooth things over rather than "get ahead" with their mortgage.
The whole bwanking industry is awash with charlatans! Disgusting.
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