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Banks using credit crunch to bolster profits: InfoChoice

by Staff Reporter7 minute read

Banks’ profit margins rose by 30 per cent in the last six months to July from 135 bps in January to 180 bps, which contradicts claims their profit margins are suffering, InfoChoice claimed today.

“The major banks have not only survived but strengthened thanks to the credit crisis, becoming the market price setter for the first time since they relinquished the position to specialist home loan lenders more than a decade ago,” InfoChoice head of research Steven Anderson said.

Mr Anderson said there was limited evidence to support banks’ claims that funding costs were still increasing.

“Based on the 90 day bank bill swap rate, funding costs have in fact fallen since reaching their peak in February,” Mr Anderson said.

Published: 04-08-08

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