Message for Sir Ralph:  Banks that make profits from cheating, from fraud and forgery, from fake ABN numbers, from electronically engineered service calculators designed to FUDGE INCOME FIGURES and cheat older Mums and Dads out of their homes or life savings - that is not profit Mr Norris and now Mr Narev and Messrs Clyne & Murray - that's criminal behaviour and needs wide ranging ROYAL COMMISSION INTO BANKS AND BANKERS, especially those who retired with obscene fat bonuses payments for flogging and manufacturing LOW DOC LOANs and fraudulent investment plans..  

The public are sick of criminal banking activity against retirees and pensioners. These financial products that are toxic and have boosted today's profits to $30 billion per annum for the four major banks should be WITHDRAWN FROM SALE.

How does losing ones home (say 200,000 families re $100 billion of toxic loans) assist our economy?  The implosion will be deafening. 

Bankers need to be brought to justice and their ill-gotten wealth be handed back to the victims of corporate and banking crime.  They have shown NO MERCY to their older victims and we will show no mercy to bankers involved in this crime of the century.  How can our banks be "the most profitable in the world" if we are only 23 million people?  The figures do not stack up.  Someone is cheating. This email address is being protected from spambots. You need JavaScript enabled to view it.

Recipe for even bigger CBA profit

John Rolfe

·  From: The Daily Telegraph

·  August 12, 2010


A...TAKE four RBA rate rises, add some of your own, then reduce deposit rates. ................B...Simmer and then serve it up to 11 million customers.

This is the Commonwealth Bank's recipe for making an even bigger annual profit than the record $6.1 billion announced yesterday.  CBA boss Ralph Norris said yesterday a likely increase in funding costs meant the bank's retail division was facing a decline in its interest margin of 0.4 percentage points over the coming year.

That might not sound like much, but it equates to about a fifth of the bank's margin on interest.  Asked whether customers should expect that they would have to offset that decline, Sir Ralph said: "At some point we may well have to pass something on to customers."

That could be by reducing the interest it pays customers on their deposits, or by raising rates charged on home loans, credit cards and the like. The bank might do both.

CBA now has the second-lowest mortgage rate among the Big Four, behind NAB.  CBA last increased rates beyond the RBA increase in December, when it raised 0.37 percentage points - an additional 12 basis points on top of the Reserve's 0.25 percentage points.

CBA yesterday released forecasts that included six RBA rate rises by mid 2012. That would take the RBA rate from 4.5 per cent to 6 per cent.  CBA tipped four of the increases to occur by the time its closes the books for its 2010-11 result.

One of the biggest boosts to the 2009-10 bottom line came from income on home loan interest, which surged to $2.21 billion, up 41 per cent - or $638 million.  Income from interest on personal loans and credit cards rose to $1.14 billion, up 19 per cent or $185 million.

After expenses and tax, profit from the retail division was $2.46 billion, up 17 per cent, or $354 million.  However, Sir Ralph had other numbers he wanted to highlight: from the bank's $19 billion operating income, it paid 45,000 staff and nearly $3 billion in tax. Fees were down $200 million.

And from its 10-figure profit it paid $4.5 billion of dividends, more than half of which went to 780,000 individual investors and most of the rest to super funds.

"There is nothing worse for a country than having banks that don't make profits," Sir Ralph said.  "Banks that don't make profits end up creating major burdens on economies."

If you have a message to convey to Sir Ralph, he has revealed how.  Asked by Channel 7 at yesterday's briefing if the bank could afford to reduce fees further, Mr Norris replied: "I've looked at The Daily Telegraph website before I came here to speak, to see what our customers had to say.


"They all said that they felt they were getting value for money.''  He then asked for my opinion: "Fair comment, John?"  I replied: ``I'll leave it to the readers.''......