Big 4 Banks make over $20 billion.

[bob dylan]

Commonwealth today announce a $5.6 Billion profit.

The others to follow.

Geez the banks did it tough during the GFC. The poor buggers.

This is totally obscene, maybe the mining tax should be applied to the banks. The governments should not allow this disgrace to continue.

These parasites continue to treat their customers like **** so the shareholders can stay happy.

Any thoughts?

 

[ManlyBacker]

Become a shareholder. It isn't a matter of the profits received but should be assessed on the return they achieve based on the funds they have working.

 

[bob dylan]

Become a shareholder. It isn't a matter of the profits received but should be assessed on the return they achieve based on the funds they have working.

Oh I am a share holder and have been since day one, getting in on a staff discount.

Its still sickening.

 

[ManlyBacker]

You would rather they lost money? Look, they have $501 billion of lending assets and $187 billion of funds under administration. Their P/E ratio is 16 which is high imo (takes 16 years of dividends to cover the share price), and their dividend yield is 4.45% franked (you can get 6.75% with Virgin with no risk and regularly get over 6% on term deposits everywhere and government guaranteed). Their cost of finance is rising again. I don't get where the problem is as this is not a communist country.

 

[COMMANDER]

rather than putting money in the bank, buy shares in the bank. 

i'd hate to have money/shares in a bank that was making a loss!

God bless em, i say.  particularly westpac and anz.

 

[bob dylan]

You would rather they lost money? Look, they have $501 billion of lending assets and $187 billion of funds under administration. Their P/E ratio is 16 which is high imo (takes 16 years of dividends to cover the share price), and their dividend yield is 4.45% franked (you can get 6.75% with Virgin with no risk and regularly get over 6% on term deposits everywhere and government guaranteed). Their cost of finance is rising again. I don't get where the problem is as this is not a communist country.

Well my problem is with what they do with the profit.

They cut staff almost daily, and cut their wages. They close branches in small towns because the staff cant sell insurance or term deposits. I left because I could not live on the money and in my years with the bank do not have a single former workmate that is still in the bank because of the poor money.

They fail to pass on interest rate cuts but are happy to put them up the day after a rise is announced without regard to anything other than greed.

They sell peoples home from under them when sickness strikes the family bread winners.

There is a lot to be said for communism when corporate greed like this displayed.

 

[ManlyBacker]

Will any other CBA employees stand up for the bank? BD has a list of negative statements that could be challenged or are they all true?

 

[Dan]

i'll make sure I read this tonight if I am having trouble sleeping

 

[ManlyBacker]

Don't eat pizzas with too much meat Dan.

 

[Mark from Brisbane]

Whilst BD has some points, I own all four of the "big 4" in my self managed super fund and am very pleased I do. I have been running this for about 15 years so even have some $5.40 CBA shares, and some $10.40 ones and a whole heap I bought on September 12th 2001 for about $15.00, plus some more during the GFC at $26. The 100% franking credits I get mean that the income to my super fund is lot higher, if they show as 4.45% I'd probably get about 6.5%, as your super fund is taxes only at 15% rather than the company tax rate of 30%.....so I actually get refunds back.

I have cash as well in my super account and it all adds up nicely BUT by comparison the $20K I stuck in a TD at Macquarie in 1995 is now worth close to $50K HOWEVER the 1000 CBA shares I bought at the same time for $5400.00 are now worth $50K plus.

And that's common for all of the big 4, the exception (or worst performing) would be NAB.

Coming from country NSW I can really appreciate what he is saying about them being pricks (which they are) BUT is profit a bad thing.....no way.

 

[CussCuss]

What an awesome decision that was to sell off CBA! Thanks John.

btw Good to see you did well out of it Mark, no disrespect to people who saw an oppertunity and took it.

 

[The Gronk]

6 billion is a massive massive profit.  If there was some more competition maybe they couldn't charge fees and put up mortgage interest rates above what the reserve bank sets so easily. 

Not being a shareholder or an employee I don't enjoy those things quite as much. 

 

[Zep]

Damn those banks for making a profit from a Business. You know what **** every company that ever made a profit from doing Business.


YAWN!! Cry more?! happens every year.

 

[CussCuss]

http://en.wikipedia.org/wiki/Coercive_monopoly

 

[Rusty]

Damn those banks for making a profit from a Business. You know what f**k every company that ever made a profit from doing Business.


YAWN!! Cry more?! happens every year.

The issue isn't making money or profit, simply how fair the system is that protects their profit.

I have no problem with these banks succeeding in the current environment, however I wonder if the government shouldn't encourage more competition. The governments primary concern should be the best welfare of the people, and that must be a consideration made with all the elements weighted against each other, ie. Shareholders v Consumers.

In my opinion the current business environment does indeed benefit shareholders at the expense of consumers to an undue level. This is a hard issue to fix but a good start would be to prevent any further mergers and to allow more institutions to act as banks.