absolutely nuts, with flavour enhancer on topAbsolutely nuts, if you are a lucky owner from long past, be aware of the fundamentalsThe CBA share price premium is really getting out of hand
The bank’s inexplicable and self-perpetuating melt-up that veteran analysts unanimously agree defies the fundamentals is powering the broader index.www.afr.com
noCBA record over 5bn in profits. Yet I havn't been paid any interest in 5yrs. I wonder were some or most of its profits come from? As a CBA banker I'm disgusted!
Anyone else suffering?
CBA record over 5bn in profits. Yet I havn't been paid any interest in 5yrs. I wonder were some or most of its profits come from? As a CBA banker I'm disgusted! They could share it around with its customers but NO their got Government Issues. #@%$!
Anyone else suffering?
Spot on Dona.no
CBA net interest margin fell 6 basis points in the December-half to 1.99 per cent, as the bank suffered pressure on both sides of its balance sheet, with competition for deposits rising alongside the fierce battle for mortgage market share.
CBA said the margin squeeze was “due to increased competition, unfavourable portfolio mix mainly from customers switching to higher yielding deposits, higher wholesale funding costs and a lower contribution from New Zealand”.
Plus there is the levy the Govt put on them in 2017
the banks are like the police, everyone hates them until they need them.
How is that possible? Are you leaving your cash in a regular transaction account or something?CBA record over 5bn in profits. Yet I havn't been paid any interest in 5yrs. I wonder were some or most of its profits come from? As a CBA banker I'm disgusted! They could share it around with its customers but NO their got Government Issues. #@%$!
Anyone else suffering?
The FCS Bank deposit guarantee provides insurance to the depositors, not the Bank/shareholders equity.As the article you linked clearly points out, the banks received and continue to receive ongoing Government support since the GFC in the form of the FCS bank deposit guarantee that is an absolutely gargantuan contingent liability on the Government as well as the comparatively astronomical contingent liability implicit in too-big-to-fail bailouts.
6bps on liabilities over $120b is a bargain.
Ask any of those bank executives if they want to forgo that explicit and implicit Government support in return for increasing profits by the equivalent of 6bps on liabilities, see what they say.
Here's what I would ask Peter King and Westpac board:
"sirs/madams, just sign this piece of paper that holds you criminally responsible on a personal basis in the event of the failure of your bank and we will not only stop collecting 6bps we'll even give you $2bn back plus interest, do you agree?"
Unlike the police, banks are private entities largely in control of their own funding and reinvestment decisions and could invest some portion of their profits back into:
* consumer protection and insurance from fraud/scams/etc
* rural branch network
* Australian customer service
and probably reduce their community hatred quotient by 95%, if they wanted to, can the police do that?
The FCS Bank deposit guarantee provides insurance to the depositors, not the Bank/shareholders equity.
By the time the FCS pays out dollars, the banks share holders and other senior securities holders will be wiped out.
Its a bit like a land lord (the bank) paying contents insurance for its tenants (the depositors), but the policy not paying out until all the land lords assets Have been exhausted.
When you consider how much money CBA has on loan to people and businesses, I wonder if $5b is a huge profit, I would think the loans would be up to a trillion dollars when you look at the prices of real estate and businesses etc.
maybe someone has the figures, I haven't time ATM.
It’s explicit support to depositors, any benefit the banks get is just really a side benefit, which they pay for anyway.I'm not saying it's insurance to bank equity, just that it's explicit support to banks from Government that shouldn't be free and that 6bps on liabilities over $120b seems like a bargain to me for that support when bundled with implicit TBTF support.
I didn't think I needed to explain the details as I provided a link to the APRA site that explains the scheme clearly.
In my opinion, CBA is way overpriced. I bet the CEO's bank balance looks fine.
Try talking the hedge profits down by by announcing NZ Business for the 2nd half of 2023? Most of the profits paying the heads!When you consider how much money CBA has on loan to people and businesses, I wonder if $5b is a huge profit, I would think the loans would be up to a trillion dollars when you look at the prices of real estate and businesses etc.
maybe someone has the figures, I haven't time ATM.
It’s explicit support to depositors, any benefit the banks get is just really a side benefit, which they pay for anyway.
Did depositors lose money in 2008? The last time in Australia any depositor lost money was in the 1930’sJust close your eyes and go back to the heady days of 2008 to remember why the guarantees were instituted in the first place, depositors don't know how bank insolvency works or where they sit in the capital stack, if depositors feel the bank is at risk the deposits leave ASAP at a time when the market for wholesale funding is frozen.
The deposit guarantee is explicit support to the banks that ensures their most stable/usually cheapest form of funding doesn't flee and blow the banks face off in the middle of a crisis - something we saw happen at Credit Suisse and multiple regional US banks just last year.
Can't even believe it's a point of contention
I would venture to say that the only time that depositors lost their savings was when the Bank of NSW (Westpac) went belly up.Did depositors lose money in 2008? The last time in Australia any depositor lost money was in the 1930’s
remind me.I would venture to say that the only time that depositors lost their savings was when the Bank of NSW (Westpac) went belly up.
Not that I was around back in those days but Bank of NSW went broke and I think was salvaged by the govt of the day and then later re badged as Westpacremind me.
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