Bank mortgage profits revealed – 45 per cent!
The incredible windfall of profits that banks make from mortgages has been revealed by a senior bank executive. National Australia Bank chief financial officer Mark Joiner said adoption by the banking industry of the Basel II accord in 2008 had doubled the industry's average return on equity for a home loan from about 22 per cent to a stunning 45 per cent.
"I find the national sport of bank bashing a bit ironic because it tends to focus on fees and the passing on of higher funding costs, when the real windfall relates to neither of those issues," Mr Joiner said.
Source: The Australian