Major Banks Analysis

Banking on a better future
Welcome to Major Banks November 2013 - our analysis of the major banks' full-year results.

FY13 has been another strong year of results for the Australian major banks reflecting solid profit growth in both the first and second halves. They have increased underlying cash earnings by 9.5% year-on-year (yoy) to $27.4bn. This translates to 4.2% growth in second half underlying cash earnings relative to the first half hoh. We have seen an uptick in return on equity to 15.9% for FY13 from 15.5% for FY12.

The environment in which these results have been delivered is broadly consistent with conditions prevailing in the previous year, albeit with a somewhat more positive global backdrop. The great uncertainty at present is what will happen to market sentiment once central bank tapering commences.

In this issue we feature two market relevant articles - the Australian Government’s inquiry into the financial services sector and the interlink between culture and risk.

Read our analysis of the results

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