According to a new report Australian lenders are among st the most profitable banks in the world for the second consecutive year.
The report authored by the Bank of International Settlements says the big four lenders in Australia lead profitability rankings in the western world.
The report cites the fact that between ANZ, NAB, CBA and Westpac, pre tax profits amounted to 1.2 per cent of assets in the previous financial year.
Canadian banks are the second most profitable, reporting profits of roughly 1 per cent of assets, with US Banks taking third spot with 0.9 per cent. Italy placed last, reporting losses of 1.2 per cent.
According to the research, Australian lenders benefit from lower operating costs and higher interest rate margins than peers in other countries. The report also suggests that both margins and costs have fallen slightly when compared to the previous year.
The BIS warned that risky behaviour undertaken by major lenders, particularly in Europe represents a threat to the global economy.
This article was first published on money-au Australia’s leading financial comparison site