Global markets favour Australian lenders
A dip in the Australian dollar could turn out well for the big four banks.
ANZ, Commonwealth, NAB and Westpac should see a boost in their profits as their offshore earnings are translated into Australian dollars. ANZ will reportedly be the biggest benefactor of its spending habits overseas, the bank generates 18 per cent of its earnings in New Zealand dollars and a further 17 per cent in Asian and US currency, making the biggest push of any Australian bank into international markets.
Despite concerns for global economic growth, Australia’s top money-holders are expected to bring in total profits of $27 billion this financial year, a return of 1.2 per cent on their total assets.
Australia’s big four banks are among the most profitable in the world, edged out only by state-run banks under the control of governments in developing countries.