Australia’s banks have been hit hard by the global financial crisis, with most of the major banks reporting sharp losses this year.
With the Australian dollar down about 40% against the US dollar since mid-2016, the Australian stock market has plunged more than 10%.
But with the windfall that the world’s biggest banks have seen in recent years from windfalls from wind farms and a new $US3 billion loan to the National Broadband Network, there are many who are optimistic about the future.
While some analysts say there is little chance the wind will recede this year, many believe the biggest gains will come from the big four banks, which have seen their share prices soar.
Key points:Investors say the banks’ profits are a “reward” for the bailout”They are getting big windfalls for their risky lendingThe banks have reported record profits over the past few years and have seen record profits in recent monthsThe biggest banks are on a “gold rush” in Australia, with their share price soaring to record highsSource: The Australian Financial Report