The Commonwealth Bank today reported its full-year cash profit swelled more than 40 per cent to $6.1 billion - or almost $700,000 an hour. That's the largest annual profit recorded by an Australian bank.
Big bank profits are potentially hot political potatoes. On the one hand, the strength of Australian banks is one reason why the nation didn't hit the economic wall that many other countries' economies did. On the other, the global financial crisis has whittled down the number of banks competing for customers' business, resulting in fatter margins that are now feeding through to their bottom lines.
Prime minister Julia Gillard urged Australian to vote with their feet against uncompetitive banks.
"I think from the perspective of Australians, they want to make sure they get a fair go from banks," said Ms Gillard said at a press conference today.
Ms Gillard said the government had made it easier for Australians by legislating against unfair exit fees.
Greens leader senator Bob Brown, meanwhile, said Treasury could consider a super-profits tax on banks, similar to the Mineral Resource Rent Tax on the mining sector.
"While many Australians are pulling their belts in, the Commonwealth Bank is raking in this huge profit," he said.
Mr Brown said the Greens supported legislation to remove $2 bank ATM fees which are already banned in the United Kingdom. Greens would also push for the creation of $5 million cap on bank CEO pay, he said.
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