News: Big four on track for $12B profit

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Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corporation Ltd (ASX:WBC), ANZ Banking Group (ASX:ANZ) and National Australia Bank Ltd (ASX:NAB) are likely to generate a combined half year profit of nearly $12 billion, that is according to the Australian Financial Review.

The expected profits have been fuelled by outsized home loan interest rate hikes, putting Australia’s big four banks on track to post record full year results.   

 

UBS bank analyst Jonathan Mott expects a robust set of first half numbers, albeit in a lower growth environment.

The AFR says additional worries for the banking industry include weak demand for new loans, the possibility of government intervention and the financial impact of natural disasters in Queensland and New Zealand.

Westpac, ANZ and National Australia Bank are next week due to report their half-year profit results for the six months to the end of March.

For the six months to the end of December 2010 Commonwealth Bank recorded an interim net profit of $3 billion.