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The big four banks will pocket an estimated $21 million of extra profit as they delay passing on rate cuts as a result of the Reserve Bank’s cash rate move, new research has revealed.
According to comparison website finder.com.au, Westpac will make the biggest profit of the major banks as a result of delaying the full 25-basis-point cut to its variable rate home loans until Monday 23 May – an estimated $8.04 million.
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Westpac’s delay will affect approximately 221,867 customers and cost each one $36.25.
CBA, which will also apply the full 25-basis-point cut to its variable rate mortgages, will make around $7.79 million by delaying the reduction until Friday 20 May. This will affect approximately 253,781 customers and cost each $30.69.
NAB will make around $3.08 million from delaying the 25-basis-point cut on its variable rate home loans until Monday 16 May, with approximately 131,221 customers affected at a cost of $23.47 per customer.
Despite ANZ being the quickest of the big four to pass on a rate reduction (Friday 13 May) – and the only major bank not to pass on the RBA’s 25-basis-point cut (19 basis points) – ANZ will still make around $2.04 million in extra profit, affecting an estimated 148,494 customers and costing them $13.71 each.
[Related: Brokers warn against churn as rate cut frenzy continues]
