With all the major banks and all the little ones posting profits in the millions less of what they have earned in the past it’s obvious the peak in banking occurred last year.

They have now well and truly entered the dreadful finical spiral!

Profit will never return to the highs they enjoyed and baseline business will continue to contract.

There are “desperate “ moves to be allowed lend home loans to people who cannot meet the minimum criteria but it will be difficult to have that approval granted.

It’s about the only thing that still is law after the Royal commission into banking. Everything else Scomo discarded.

Banking profit comes directly from its loan books.

They are now looking at several generations of Australians who completely have given up on buying a home and found suitable alternatives.

This leaves the bottom line, bleak to desperate in the immediate to long term unless serious government intervention( I.e stimulus support).


The Australian banking system that has profited so much on the back of rising property prices are now going suffer ( badly) for that very reason!

Not before time.

When sub-prime loaning is massively committed to nebulous sometime down the track 'equity' increase to promote 'investment', rather than on actual equity available at time of loan application, and rather than promoting Home Ownership as the true way forward - and the banks and governments are hand in glove in this approach to self-enrichment - then sub-prime political interference is the order of the day - with 'governments' pursuing mindless policies that have only one effect - to continue the false rise and rise of 'equity' based on hot air, via immigration way above value to the community, reduction in true value of earnings for the majority so as to create and extend Divides (Gaps) based on acquisition of property or inability to do so, endless rises in costs of living (often in those former public utilities that government 'sold off' and yet retains a serious interest in and so sets the pricing to suit ITS profit ideas in concert with its 'partners') and other policies used to distract the populace from this very real set of issues that are affecting all who have an income lower than a certain point.

Time to overturn the whole box and dice and start again.   8-)

I think "Banks" will evolve and could potentially actually become even more profitable.

They might start broadening their offerings to include there own e commerce platforms tied directly to accounts. Perhaps offering one stop shops buying,renting, selling real estate etc and tying in mortgage and equity loans through a single developed platform etc.
They could start offering more integrated platforms with digital connectivity and grow the income base etc.

I'm not sure what's going to happen with digital currency integration but I'm pretty sure banks will keep finding a way to prosper as long as capitalism does.

goosecat wrote on Nov 11^th, 2024 at 7:13pm:

They might start broadening their offerings to include there own e commerce platforms tied directly to accounts. Perhaps offering one stop shops buying,renting, selling real estate etc and tying in mortgage and equity loans through a single developed platform etc. They could start offering more integrated platforms with digital connectivity and grow the income base etc.

Sounds like a plan!

MeisterEckhart wrote on Nov 11^th, 2024 at 7:44pm:

goosecat wrote on Nov 11th, 2024 at 7:13pm: They might start broadening their offerings to include there own e commerce platforms tied directly to accounts. Perhaps offering one stop shops buying,renting, selling real estate etc and tying in mortgage and equity loans through a single developed platform etc. They could start offering more integrated platforms with digital connectivity and grow the income base etc. Sounds like a plan!

Indeed but that’s already happening with other platforms.
There is also the reputation, I don’t believe that they are looked at that favourable in the community.
The only thing for sure is the traditional loan book will only continue to shrink and the banks will have to change.
I believe we will see further merging such as ANZ and Suncorp .
Just like airlines I believe that there is only enough business for two and a half banks in Australia.

How much will Albo pay ANZ to stay?-

https://www.abc.net.au/news/2024-11-11/government-striking-deal-to-maintain-anz-bank-pacific-presence/104587514

When you realise the golden mortgage goose is cooked you bail out or beg for taxpayer dollars?

I thought competition and free market a cornerstone in democracy?

Unless your a bank I guess.

My bank is in Europe, no Australian bank comes close to it in performance or customer service.