Three of the four big banks are not far away from reporting on their 2018 financial year earnings which should provide interesting dialogue in the light of the royal commission and a news article last week.
The Sydney Morning Herald suggests that the big four banks could still have over $3b in refunds still to pay over the next year or so.
Morgan Stanley, banking analysts are predicting that the big banks 'will incur another $2 billion in customer remediation costs next year, and $875 million in 2020' after lifting their prediction up from $500m calling it 'earlier and larger than forecast'.
Both Westpac and ANZ have flagged possible costs ahead of their reporting events shortly. Along with NAB these will occur within the next month. We can expect that some of these costs are likely to eventually turn up as higher interest rates.
The main lesson for us is that smaller banks and lenders are back in favour; they're smaller which means they're nimble and likely less effected by larger institutionalised practices.
We have many good, solid lending choices in our repertoire and you have access to them too.
Come and see us if you aren't sure how your loan or loans are situated.
SMH article is here.