by Chris Becker
Money laundering scandal? What money laundering scandal? The biggest division of Megabank, the former government owned division, just posted its eighth record high profit, slightly beating expectations.
More from Bloomberg:
Cash profit, which excludes one-time items, rose 4.6 percent to A$9.88 billion ($7.8 billion) in the 12 months ended June 30 from A$9.45 billion a year earlier, the Sydney-based lender said in a filing Wednesday. That compares with the A$9.79 billion median estimate of 13 analysts, according to data compiled by Bloomberg.
This year, all of the country’s big banks have increased interest rates on investor and interest-only mortgages following pressure from regulators to rein in credit. That has allowed the banks to rebuild lending margins squeezed by the low-rate environment and intense competition.
The bank said it is in discussions with third parties about their potential interest in its life insurance unit in Australia and New Zealand. The talks may lead to the sale of the business but the outcome of the discussions is uncertain, the lender said.
So, more “borrow money til you dead” with zero risk to the bank and less actual beneficial financial products?
Banking is fun!