Bank profits vs Fire appeal donations

[6maniac]

Bank Profits
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About this Item
Speakers - Gibson Mr Paul
Business - Private Members Statements, PRIV


BANK PROFITS
Page: 6533

Mr PAUL GIBSON (Blacktown) [1.18 p.m.]: I refer to a subject that many of my constituents have talked to me about over the past weeks, that is, bank profits. The Commonwealth Bank, in the six months ending December last year, made a record profit of $2.37 billion. The National Bank, up until September last year, made $4.4 billion in profit, a 17 per cent increase on previous years. St George Bank, up until September last, $1.16 billion, a 13 per cent increase. The ANZ Bank made $4.2 billion, a 13.3 per cent increase. The Bendigo Bank, for the first half of the year, made $70.7 million, a 27.6 per cent increase. The Bank of Queensland, for the half year, made $129 billion, a 40 per cent increase. The ING Bank made a record $314 million. Westpac Bank made a record $3.5 billion profit.

(Transcript 08April2008)

$1 000 000 each from the big four ?

[6maniac]

I'm giving this a bump because I think this is only PR on the banks part, given the massive profits they have made over the last decade.

Any bank manager's feel like going to bat for their employer ?

[Ratmick]

Before I start let me say that I'm not a people manager, I'm actually a technology manager (well my title says so anyway). AFAIK no-one else from NAB is on here and if they are no-one knows WTF I am anyway, so I am not blowing the corporate trumpet for personal gain.

The NAB donated $1,000,000 on Sunday night http://www.nab.com.au/wps/wcm/connect/n ... elief+fund. I'm sure it's only the first part of a LOT of relief in different forms the NAB and the rest of the big and small Banks will be handing out over the next few weeks. Most other companies will follow suit.

For all the bashing Banks receive the NAB is actually quite a good corporate citizen. It donates money to good causes, it sponsors sport, it donates its employees time and has just given (with no strings attached, nor requests for public acclaim or recognition) my St Johns division $1500 to buy new radio gear. It gives every employee two days a year off for community volunteer work and penalises them if they don't use it. Most use more. I personally do a LOT more than is expected, but I don't do it to fulfill my KRAs, I do it because I want to.

The Banks make a LOT of money. As they are publicly-listed companies this is their job and their duty to their shareholders. Yes the money they make may seem obscene to most people (it certainly does to me) but as I said it's their job. Part of this goes back to their employees, the NAB pays pretty well and we get performance-based bonuses, but a lot of the profit gets plowed back into Technology and is returned to shareholders in dividends. It's no different to a big mining company or any other publically listed company...except it doesn't really produce anything that you can see.

Don't start me on CEO's salaries, that's a different argument altogether .

I think you are out in the BoQ's profit figure by a factor of a thousand btw .

Mick

[6maniac]

Thanks Mick .... so why don't the banks blow their own trumpet a bit more ?
Re: shareholders..... I'm sure every one of them would be glad to see more donated by each bank on their behalf in the present emergency.

[Spex]

I'm sure every one of them would be glad to see more donated by each bank on their behalf in the present emergency.

If you ask the individual shareholders, you're probably right. Unfortunately, most of the shares are held by other companies, investment funds and other institutional shareholders, not to mention overseas parents and partners. Good luck trying to find a conscience there.

[Stereo]

I heard on FoxFM that one branch of Bendigo bank gave $100,000 .... Bendigo bank is from what I understand more along the lines of a franchise kind of thing, so for this branch to give away all of that money is just awesome, it was not a reflection of the "bendigo bank" but a reflection of the board of directors of this one particular branch.

[Ratmick]

I heard on FoxFM that one branch of Bendigo bank gave $100,000 .... Bendigo bank is from what I understand more along the lines of a franchise kind of thing, so for this branch to give away all of that money is just awesome, it was not a reflection of the "bendigo bank" but a reflection of the board of directors of this one particular branch.

Bendigo Banks are often 'Community Banks' and often only open after the community 'pledges' deposits to make opening a new branch worth both their whiles. In this case the Bank and the Community probably have a greater sense of ownership from both sides and it's a good thing, especially when the smaller towns have been deserted by the larger banks in the 90s and the Bendigo Bank was the only one willing to stick around.

Given the recent fires up in Bendigo and the head office being in the middle of the city I think it's a natural thing for the Bendigo Bank to do when this sort of disaster occurs.

IMHO the bigger banks could learn from this greater community involvement at a grass roots level and not appear as a monolithic corporation...but I think the banks in smaller towns are much like this in most cases anyway. The NAB staff in Kyneton know their customers by name, as does the CBA's and Westpac's in Woodend. Makes sense when the communities are so small AND the staff often grew up and live there. I'd love to work out here, I was wondering about a career change to a bank manager in a small country town, less hassle with commuting and a sense of making a difference, whereas now I am a small cog .

Spex is correct too, most blue chips shares are held by super funds and other larger conglomerates.

Mick

[Cath]

so why don't the banks blow their own trumpet a bit more ?

Not everyone likes to trumpet about their charitable giving. Quite a few people give quietly and nobody ever knows about it. It is considered by some to be a little tasteless to brag about the amount they donated.

[Naked Twin]

If you owned a company that turned over billions of dollars would you not expect some return? The profit may seem high but balance that with the amount of turnover they do. The profit is not a massive margin but smart use of the numbers game, take a little from a lot.

All the fees are only paid by people who don't know how or don't want to play the game. Banking is business, so you are dealing with banks treat it like a business.

Nick

[Ratmick]

06:38 09Feb09 -Banks pledge more than $3m in bushfire assistance
By Alison Bell

MELBOURNE, Feb 8 AAP - Four Australian banks have pledge more than $3 million to
help victims of Victoria's bushfires.

The National Australia Bank (NAB), Commonwealth Bank of Australia (CBA) and ANZ
have stumped up $1 million each in funds or donations, while Bendigo and
Adelaide Bank, through its Community Enterprise Foundation, launched a Bushfire
Appeal with an immediate $100,000 donation.

NAB was the first of the majors to establish a relief fund of $1 million for
bushfire victims.

It was followed by CBA, which also pledged $1 million and activated an emergency
assistance package for customers who are victims.

Key features of the emergency package include providing additional loans or
changes to repayment arrangements for CBA home loan customers who may experience
difficulties because of the bushfires, waiving establishment fees on
restructured business loans for existing business customers, and expediting
claims to CommInsure for customers seeking help through their insurance.

CBA will also review credit card instalments and consider requests for emergency
credit limit increases, CBA said.

The bank will waive pre-payment charges over the next month for affected
customers wishing to access term deposits, Commonwealth investment bonds and
CBFC debentures ahead of their maturity dates.

ANZ Banking Group followed suit with a $1 million donation to the Victorian
bushfire appeal, cash grants to customers whose homes have been totally or
partially destroyed by the fires, and other measures including an offer to
suspend loan repayments.

Mortgage customers whose primary residence has been totally destroyed by the
fires will receive a $10,000 grant from the bank, while those whose homes were
partially destroyed through structural damage will receive $5,000.

ANZ will also provide a $10,000 cash grant to farm customers whose home, stock
and machinery have been totally destroyed, along with $5,000 to customers whose
home and farms are partially destroyed to assist with stock management and
essential farm items, the bank said.

ANZ will also consider temporary adjustments to customer lending limits
including credit cards, the bank said in a statement.

AAP ahb/jpm/nf/cdh



Monday, 09 February 2009 06:38:07
AAP [nAAp24282a] {C}
ENDS

[javaman]

At the end banks are there to make profit, not donation. And donations are what they are - donations. They can argue that the tax etc. to the government is due and paid for.

I think they are bloodsuckers (Youtube "Money as debt") but that's a different topic. A necessary evil in capitalism.

[corvus2606]

So i assume that the new fees that may be coming in on ATM transactions will be to cover the 'monumental loss' that the banks had to take by donating a few mil

banks are there to provide a service, that being to hold my money, and considering these days, you pretty much have to get paid into a bank account, it kinda makes their customer base a little captive. But spending as much of my money as they can in fees should not be a part of that service, and on top of that, you dont have a say, they can introduce a new charge, and you probably wont even find out until your next statement.

bunch of rot in my opinion. the banks need to realise that they need us, not the other way around