Australia’s 4 major banks - ANZ, NAB, Commonwealth and Westpac - have announced their results for the last year.
In round numbers they’ve made a little more than 20 thousand million dollars in profit.
There are just over 20 million Australians.
That’s about $1,000 each year from every man, woman, child and baby in the country. In bank profits.
About $88 every month extracted from every Australian man, woman and child.
And not to pay for the banks' costs in wages, or buildings, or ATMs.
No, it’s profit. Profit after the banks have paid all of their costs. And their costs before profits include obscene wages to the big bosses.
The boss of the Commonwealth Bank is just a man like you or me. He takes $16.2 million in wages every year.
$1,350,000 every month. $67,500 every single business day. $8,500 an hour.
Yesterday he announced that his bank would raise mortgage interest rates by almost double the Reserve Bank’s official rate.
On an average $300,000 mortgage, that means you’ll pay $88 extra per month or more than $1,000 per year.
If the Commonwealth had kept to the Reserve’s .25% raise, that would have been about $48 per month.
So where does your extra $40 per month go? If you are one of a select group of Commonwealth Bank customers, we’ve found a nice way for you to think about your extra payments. For those customers, 100% of the extra money you’ll pay will go to one man’s account.
The boss of the bank himself. Ralph Norris is his name.
33,750 mortgage holders will get the warm feeling, the privilege of knowing that every cent of the extra money they’ll find will go to the pay of one man.
Let’s call them the “33 Thousand Club”
The “33 Thousand Club” will pay an extra $40 extra per month, that’s $480 per year.
33,750 times $480 equals $16.2 million. Ralph’s pay.
If you’re one of the 33 Thousand Club, here are some of the things your money won’t pay for. It’s not going to pay for the Commonwealth Bank’s
* Wages for tellers
* Wages for cleaners or accountants
* In fact it won’t go towards wages for anyone other than the CEO, Ralph Norris
Your extra money won’t pay for the Commonwealth Bank’s
* Electricity bills
* Water bills
* Postage bills
* Borrowing costs
* Armoured vans
* Paper for the printer
* Staff Christmas party
And none of your money will go to the banks profits.
None of your money will go to the banks shareholders. It won’t go to the bank’s depositors in interest payments.
No, for 33,750 lucky mortgage holders on the average $300,000 mortgage, the extra money the Commonwealth Bank has decided you will pay will go to one man.
Ralph Norris. The boss.
He receives $16,200,000 for making decisions like the one that will cost you extra money on your mortgage.
We, the members of the 33 Thousand Club, hereby petition the CEO of the Commonwealth Bank of Australia, Mr Ralph Norris, to personally sign a letter thanking each of us for paying his $16,200,000 salary. Thanks Ralph.
Looking forward to getting your note – and a discount on the mortgage would be nice too.
The Commonwealth Bank - 33 Thousand Club? petition to Australian Banks was written by 4bc fairfax radio and is in the category Consumer Affairs at GoPetition.