Commonwealth Bank Profits?

Discussion in 'Markets & Economies' started by errol43, Aug 10, 2016.

  1. errol43

    errol43 New Member Silver Stacker

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    Nowhere in their balance sheet do you see their Derivative exposure! Why? It is what is referred to in big banking circles off the book accounting! $15 trillion exposure? Bank's capital $950 billion. London to a brick is the bet!

    Betting on the nod :) Paint your painted pony let the spinning wheel ride.. Banks are the gamblers in the World Casino.

    $9.5 billion profit on $950 billion capital = 1% on my reckoning. Even a drovers dog could do nearly as well. :D

    Regards Errol 43
     
    errol43, Aug 10, 2016
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  2. Old Codger

    Old Codger Active Member Silver Stacker

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    1%,

    Bloody greedy I reckon, come the revolution the blood sucking capitalists will be up against a wall the next day.

    OC
     
    Old Codger, Aug 10, 2016
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  3. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    If the RBA cuts rates another 2-3 times between now and this time next year, CBA will be losing money
     
    Caput Lupinum, Aug 10, 2016
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  4. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    What they need to do is increase fees and charges
     
    Ipv6Ready, Aug 10, 2016
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  5. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Said on the radio they had a profit write down on bad loans to resources companies. Poor buggers.
     
    Clawhammer, Aug 10, 2016
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  6. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Time to fire some staff
     
    Caput Lupinum, Aug 10, 2016
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  7. Old Codger

    Old Codger Active Member Silver Stacker

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    Time to fire THE BOARD! ;-)

    And I read that the "Provisions for Bad and Doubtful Debts" is 0.19%

    That is VERY low and the Banks are usually comfortable with anything less than 1%. Anything over and they begin to worry, and anything near 2% and they call in the CEO to explain.

    As for 'Derivatives' in the Balance Sheet. I last checked about 2 years ago in the WESTPAC annual report and they had about 500 Billion on EACH side of it, so I can only assume losses and gains may well cancel each other out, but cannot guarantee that. I had never heard of a derivative until maybe 5 years ago.


    OC
     
    Old Codger, Aug 10, 2016
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  8. Old Codger

    Old Codger Active Member Silver Stacker

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    #3,

    The accepted 'spread' for borrowings interest cost, and loans interest return, was/is about 2%, needed to cover basic costs, staff, premises, losses, tax, CEO benefits!

    OC
     
    Old Codger, Aug 10, 2016
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  9. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    You can't put price on dreams. They have transcended the world of profit and loss.

    [​IMG]
     
    SpacePete, Aug 10, 2016
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  10. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Clawhammer, Aug 11, 2016
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  11. errol43

    errol43 New Member Silver Stacker

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    errol43, Aug 11, 2016
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