The purpose of this study is to estimate the amount mortgages for owner-occupiers contributed to the profits of the big four banks (big four) in Australia: ANZ Bank, the Commonwealth Bank of Australia, the National Australia Bank and Westpac Banking Corporation. The big four banks rank among the top seven listed companies in Australia when ranked by their profit. 

An analysis of the data suggests big banks profit disproportionately from housing loans to owner occupiers. The big four banks make $229,000 in profit on the average 30-year home loan for owner-occupiers. 

Key findings

• While mortgages for owner-occupiers make up 23% of the big four banks’ loans, they make up 39% of their profits – suggesting owner-occupiers disproportionately contribute to the $43 billion in pre-tax profits the big banks recorded last year.
• The average 30-year owner-occupier home loan in Australia is $736,000 and big banks are now receiving $228,900 in profit on such loans.
• Lending money to home buyers is almost as profitable as mining in Australia, with the big four banks joining Rio Tinto and BHP in the top six most profitable companies in the nation.
• The Commonwealth Bank is the 11th biggest bank in the world and the biggest company in Australia with a market capitalisation of $292,000,000,000.