 Banks profits announced
National Australia Bank has announced half-year net profits of $2.66 billion, angering home owners who didn't get a rate cut earlier this month.
Following the Reserve Bank's 25 basis point cut to official rates earlier this month, the NAB refused to pass on any of the savings to home owners. The remaining three of the majors- Commonwealth Bank, ANZ and Westpac - all announced cuts to their standard variable rate of 10 basis points.
However, a NAB spokeswoman said customers had not been short changed and says the banks has endured increase funding costs in regards to mortgages, which at some point would have to be passed on.
"To stay and secure we need to make sure that the bank continues to be well run," said NAB spokeswoman Felicity Glennie-Holmes.
"Our standard variable rate mortgage is the second lowest of all the majors and we have cut our standard variable mortgage rate by 3.87 per cent per annum since September last year.
Christopher Zinn, spokesman from consumer group Choice, says the global financial crisis has brought about a new era of responsibility when it comes to banking and people are looking to banks to act responsibly as a result of this. He also said he can understand that NAB customers today would be thinking that NAB has failed them.
Currently, the CBA has the lowest standard variable rate of 5.64 per cent, followed by NAB at 5.74 per cent, and Westpac and ANZ at 5.81 per cent, according to Canstar Cannex.
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