Westpac was the last of the big four banks in Australia to announce its annual profit. It made the biggest — a whopping $6.3 billion, 84% higher than 2008-09. The Commonwealth Bank made the second biggest profit this year, $6.1 billion (up 42%). It was also the first bank to announce it would raise its interest rates for home mortgages more than the latest Reserve Bank interest rate rise. ANZ made $5 billion (up 53%) and NAB $4.6 billion (up 63%). The big four made a total profit of $23 billion.
Mike Smith, the CEO of the ANZ Bank has fumed about Liberal-National shadow treasurer Joe Hockey’s recent populist rhetoric against the four big banks that increasingly dominate the Australian economy. “The Liberals’ economic credentials have been hijacked by out-there proposals”, Smith said in the October 29 Sydney Morning Herald. “Mr Hockey seems to be on some kind of personal vendetta. It would appear he has been taking economics lessons from Hugo Chavez.” Has Hockey been taking lessons from Venezuela’s socialist president?
During UN Disarmament Week (October 24-31), a bill to enact the UN Convention banning Cluster Munitions is to be tabled in the House of Representatives. However, it is unlikely to contain a provision prohibiting financial institutions from funding manufacturers of cluster bombs. It has been found that the ANZ bank has provided loans of $136.5 million to producers of cluster bombs.
Australia’s big banks would like you to think they care about climate change and the environment. But don’t believe them. A new report by Greenpeace Australia has revealed the “big four” — Westpac, ANZ, Commonwealth and NAB — are investing billions of dollars in Australia’s dirty coal boom. Burning coal for energy is Australia’s single biggest contributor to climate change, making more than a third of the country’s greenhouse gas pollution. Australia is also the world’s biggest coal exporter — and the export trade is growing fast.