Australia’s big four domestic banks are pursuing a relentless strategy of maximising profits, helped by a booming housing market and protected by the blanket government guarantee on deposits that was implemented following the global financial crisis.
Commonwealth Bank of Australia CBA, for example, posted a record-breaking A$9.9 billion $7.8 billion full-year profit in August.
Shareholders are dining well on fat dividends. Together, the four largest commercial banks ANZ, CBA, National Australia Bank NAB and Westpac, which make up 33% of the benchmark ASX50 index pay an average yield of 6%. And some of the main beneficiaries are Australian workers...
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