Big four, bigger grins
The Big Four have posted a combined $11.3 billion in profits. That’s billion. With a B. In a cost-of-living crisis. Investor Daily reports the quartet remain extraordinarily good at the ancient art of charging more than they pay.
Margins held up. Shareholders nodded approvingly. Customers continued funding the dividend machine. Banking in Australia remains what economists call “competitive”. In the same way airlines might compete to charge you for oxygen.
Short URL: https://bit.ly/4bigfour11b
Meanwhile:
Commonwealth Bank is cutting around 300 jobs while unveiling a plan to spend $90 million creating an “AI-ready workforce”. Translation: robots don’t need lunch breaks.
The bank says it’s about efficiency and capability uplift. Employees may describe it differently. Corporate Australia has discovered that artificial intelligence pairs beautifully with natural redundancies.
Short URL: https://bit.ly/4cbacuts
But wait there’s more…
CBA’s CEO, Matt Comyn, has taken aim at the payment card giants like Master Card and Visa who are argues are taking far too much of a clip on card transactions. He says banks shouldn’t be copping all heat when global tech are smashing customers with high charges.
It’s a rare moment when a bank positions itself as the underdog. The optics are delicious. Australia’s largest lender casting itself as David in a battle with Big Tech Goliath.
Short URL: https://bit.ly/4combatech
youX data fallout
The youX data breach has 444,538 borrowers’ records potentially on the dark web, alongside 629,597 loan applications and data from 797 broker organisations.
The MFAA has issued guidance. Multi-factor authentication. Cyber insurance. Incident response plans. Cyber Wardens program. The advice is sound. The damage is done.
Short URL: https://bit.ly/4youxguide
NAB’s banking centre bet
NAB opened what it calls Australia’s first fully integrated financial centre in Chatswood — home lending, everyday banking, private banking, small business, fraud assistance, all under one roof. Part of a $109 million two-year investment. An additional $55 million committed for 2026. Fifty new branch staff being hired. NAB’s bet: human contact matters. It’s either visionary or nostalgic. We’ll give them eighteen months.
Mortgage record, wrong kind
Residential mortgage lending hit $115.18 billion in Q4 2025 — the first time the $100 billion quarterly barrier has been broken. But loan volumes remain 12 per cent below the 2021 peak. Average loan size is up 24.7 per cent since then. Investors now hold a record 39 per cent market share. New home construction lending? Down 9 per cent. Refinancing? Record high at 641,552 loans. More debt, same number of houses.
Non-banks: Moving and shaking
Quickli: has incorporated AI into its new Pro platform, promising smarter servicing calculations and workflow enhancements. Technology is now less “nice to have” and more “compete or retire”.
Brokers who ignore automation may find their competitors don’t.
MoneyMe: has hit a $1.75 billion loan book in the first half, with operating cash profit in sight, according to The Australian. Growth is alive and well in non-bank land.
Scale first. Profit soon. That’s the fintech hymn sheet. Investors are watching whether the chorus finally hits positive cash flow.
Latitude Financial: posted a 59 per cent jump in cash NPAT to $105.1 million for FY25. Originations hit a record $1.6 billion. Net interest margin expanded 104 basis points to 11.7 per cent. Gross receivables at five-year highs. CEO Bob Belan credited an expanded broker network (5,500 accredited brokers) and rate easing tailwinds.
Higher volumes, better earnings. Credit demand hasn’t vanished. It’s just become more expensive.
Finsure: turns 15 with a 43% surge in commercial and asset lending. Diversification isn’t a buzzword. It’s survival.
Residential cycles wobble. Commercial and asset finance picks up the slack. Smart aggregators follow the volume.
Summary
Banks are making extraordinary money while managing extraordinary optics. The housing market is setting records that nobody wanted. A data breach is reverberating through the broker channel. And everybody, everywhere, is launching an AI product. Some of them even work.
