Commonwealth Bank is raking in an extra $1.7 billion of annual profit because more of its depositors hold funds in “online” savings accounts, while higher-interest “bonus saver” products are more popular with customers at rival banks, according to Macquarie.
This beneficial mix allowed CBA to pay out relatively less interest to customers, supporting its “net interest margin”. “Deposits remain the key differentiators for banks, which is even more evident in the environment of higher rates,” Mr German said in the report.ACCC deposit inquiry in December identified problems with the market’s transparencyGiven inevitable political scrutiny on the banks leading into the next federal election, to ensure official rate cuts are passed through in full to home loan borrowers, analysts said deposits would be the way banks manage margins during the looming loosening cycle.
In 2019, the average “base” rate was 0.65 per cent below the cash rate; today, it is 2.30 per cent below, according to Morgan Stanley’s numbers., Australian Competition and Consumer Commission chairwoman Gina Cass-Gottlieb said its retail deposits inquiry last year found customers reporting difficulties searching for, comparing, and switching between savings products.
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