The Australian major banks have reported a decline in financial performance for the full financial year 2020, with a combined cash profit after tax from continuing operations of $17.4 billion, down 36.6 percent on FY2019. As the impact of the COVID-19 pandemic continues to evolve, the banks have maintained a strong focus on supporting their staff and customers, as they demonstrated resilient operations and continued lending.
FY2020 has also been a year when interest margins have continued their downward trajectory (in a record low interest rate environment), costs have remained stubbornly high and significant extraordinary items, such as customer remediation and regulatory charges, heavily influenced the full year results. While the banks have significantly increased their loan loss provisions and allowed customers to defer loan repayments, to date their actual loss experience has been minimal. The open question is to what extent loan losses will materialise in 2021, as the Commonwealth Government unwinds its economic support measures.
An infographic snapshot of the major Australian bank's full year financial results.
Opportunities and challenges the Australian financial services sector is facing post COVID-19.
Opportunities and challenges the Australian FS sector is facing post COVID-19.
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