Commonwealth Bank attacked over profits

Commonwealth Bank attacked over profits

13 August 2010

The Commonwealth Bank reported on 11th August a $6.1 billion profit. Yes, you read that right. Six billion dollars. Wow. That is a lot of profit. In fact, the figure is the largest annual profit recorded by any Australian bank. With the other major banks providing stiff competition in the massive profits department, the Commonwealth Bank must be happy with the result. No doubt the bank’s shareholders will be happy with the dividends they receive and the company’s directors excited about the huge bonuses coming their way.

Not everybody sees the monstrous profits of the big banks as a positive thing though as the issue shapes to become a politically sensitive one. Family First Leader Senator Steve Fielding reacted angrily to the profits by saying ‘If Labor and Liberal had any guts they would take on the big banks and make them pay for the years of pain they’ve caused ordinary Australians by ripping us off time and time again.’

Not holding himself back Fielding continued ‘The banks are a bunch of greedy thieves, ripping off Australians trying to live the dream of owning their own home.’ Greens leader Bob Brown chimed in with ‘while many Australians are pulling their belts in, the Commonwealth Bank is raking in this huge profit’.

Joe Hockey summed up the general feeling well when he said ‘the banks are going to make as much profit as they can’. That is, after all, what they do. Julia Gillard, not wanting to be left out of the discussion made probably the most helpful comment advising Australians ‘to keep the pressure on your banks by shopping around.’

Credit unions and building societies have been around for years and as people grow tired of the big bank’s methods they are becoming an increasingly popular alternative. Credit unions and building societies don’t pay dividends to shareholders or lavish huge salaries on expensive CEOs. Their structure is one of equality and putting the member’s financial goals first.

As our 2010 TV commercial suggests that is why '4.5 million Australians choose to bank at a place that isn’t a bank at all. A place with the products of a major bank but where profits go back into making better products. When you bank with a credit union or building society, it all comes back to you.'