Foreign bank profits lag domestic banks

Foreign subsidiary banks – of which there are 10 in Australia – recorded a return on assets of 0.8 per cent in the year to June 2005 and also recorded a return on equity of 11.8 per cent in 2005. This makes foreign subsidiary banks the least profitable segment of the banking industry in Australia.
This group includes HSBC, ING and Investec, and also much smaller banks such as Arab, Bank of Cyprus and Laiki. By comparison, major banks earned a return on assets of one per cent in the year to June 2005 and a return on equity of 14.4 per cent. Other domestic banks in Australia earned a much higher return on assets of 1.5 per cent in 2005 and a return on equity of 18.2 per cent.

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