“Nearly 80 percent of Australian bank profits go straight back to shareholders Australian bank profits belong to you.”
Almost 80 percent of Australian bank profits go straight back to shareholders.
A lot of people don't know that nearly 80 percent of all Australian bank profits go straight back to shareholders and the majority of those shareholders are everyday Australians who own bank shares through their super funds.†
Not just big wig investors
Australian bank profits go to millions of Australians who own Australian bank shares through their superannuation accounts. Many super funds use Australian banks as a secure and reliable investment for the retirement of millions of everyday Australians. Profits go to ‘mum and dad’ investors who for decades have been able to rely on Australian banks as a secure investment with good returns.
Millions of Australians receive bank profits through their super funds
If you’re an Australian with a super fund, you will almost certainly be sharing in the profits that Australian banks distribute to shareholders. Super funds invest in Australian banks and Australian bank profits have been a driving force behind super fund performance.
† “The “nearly 80 percent” figure refers to the dividend payout ratio of the 8 key Australian retail banks averaged over 2016 and 2017. The data are sourced from bank annual reports. The dividend payout ratio is calculated as the sum of the dividends paid divided by the sum of cash earnings.”
According to the ATO more than 14.8 million Australians have at least one superannuation fund account (around 40% have more than one). It’s safe to say that many super funds invest in Australian bank shares as part of their portfolio.
This means that millions of Australians own bank shares.
“Australian banks don't keep all their profits. Nearly 80 percent goes straight back to shareholders, including Australians just like you.”
Wesley Tronson, NAB
“Nearly 80 percent of Australian bank profits go straight back to shareholders. Australian bank profits belong to you.”
Simina Creta, ANZ
“Nearly 80 percent of Australian bank profits go straight back to shareholders, including millions of Australians just like you. The banks don’t keep it.”
Kan Zhou, CBA
With the active participation of 24 member banks in Australia, the Australian Bankers’ Association provides analysis, advice and advocacy for the banking industry and contributes to the development of public policy on banking and other financial services.