New analysis by The Australia Institute reveals that while mortgage holders are being hammered by the RBA – with a fifth interest rate rise announced today – the big four banks are making record profits from customers’ pain.
The analysis shows that banks now make a staggering $266,000 profit from the average owner-occupier 30-year home loan of $731,000 – up $40,000 since interest rates start rising earlier this year.
“The banks are doing nothing to ease the pain of customers. Rather than helping, they’re making it worse, scraping huge profits from people who are only trying to put a roof over their families’ heads,” said Greg Jericho, Chief Economist at The Australia Institute.
“While borrowers are struggling to make repayments, going backwards or, worse, losing their homes … the big four banks are cashing in on their misery.”
The analysis reveals that the big four banks now make an average of $12,200 profit in the very first year from the average new owner-occupier mortgage.
“That’s not money to run a branch, operate an online banking system or even pay multi-million dollar salaries to executives, this is pure profit, on top of all that. It’s obscene.
“Right now, an average Australian family with an average loan from a big four bank is contributing $234 a week to their bank’s profit – more than a thousand dollars a month going straight to a company which consistently records multi-billion dollar profits while customers experience unprecedented pain.
“The RBA’s decision to lift interest rates against today punishes people who are already being punished by their bank.
“Ordinary Australians – particularly those under mortgage stress – are not causing inflation by spending too much. Inflation is being driven by the cost of fuel, caused by Donald Trump’s war in the Middle East, and corporate profits.
“This brutal decision by the RBA won’t fix inflation. But it will see many decent Australian families forced from their homes.”
