15 Aug 2011

Australian banks envied

7:08 am on 15 August 2011

Despite all the turmoil in global markets, banks in Australia are doing very well.

Radio New Zealand's Sydney correspondent says most bankers in Europe and the United States these days would give their right arm to swap places with their counterparts in Australia.

Case in point was the Commonwealth Bank, the biggest home lender in the nation.

CBA last week beat market expectations and delivered a record annual profit of $A6.84 billion - the highest ever for an Australian bank.

The bank's mortgage book is in rude health, bad and doubtful loans are down and it's reaped a windfall from accelerating home loan rates faster than the cash rate.

So successful is the Commonwealth Bank in relative terms that it is now the 10th largest bank in the world by market capitalisation.