Australian banks half-year results
“While the major Australian banks have posted another strong result, the question remains, where to from here?"
- Paul Siviour, Oceania Banking and Capital Markets Leader
EY’s analysis of the half-year banking results
In this year’s half year results, the major banks delivered a strong performance in cash earnings. Overall, cash earnings are up 7.3% compared to the same period last year, reflecting modest net income growth, continued strong growth in other income, substantially flat or reduced operating expenses and a small reduction in provisioning costs. But where to from here?
Banks have adapted to a lower revenue growth environment which is likely to continue as a result of subdued consumer and business confidence and the probability of fiscal consolidation flowing from the anticipated Federal Government deficit.
In this environment, balancing cost, innovation and regulatory changes are the immediate challenges for Australian banks. For the remainder of 2013, they will need to continue to focus on key strategic projects aimed at improving productivity, product innovation and customer experience and engagement; while continuing to closely manage their costs. Looking forward banks are increasing their focus on growth opportunities in Asia, investing in the digital space and continuing to focus on building their wealth management businesses.
In this edition of Banking Agenda we reflect on the overall performance of the major banks’ half year results, and further discuss the key challenges over the next period.
Click here to view our report.
Click here to view the summary of key results.
Please feel free to contact me or your EY representative and as always we welcome your feedback.
Banking & Capital Markets
Phone: +61 2 9248 4188
(April 2013, Australia)
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