Banks to reward shareholders at expense of customers as they post record profits

Shaun Drummond, Patrick Commins and Clancy Yeates

Oct 26, 2015 – 12.00am

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Bank investors are confident the big four will use their market power to protect profits and shareholder returns by pushing the costs of higher bank capital onto customers.

Ahead of a week when the major banks are expected to report combined earnings of about $30 billion this financial year, fund managers dismissed comments from the banking regulator that they should lower expectations.

Shaun Drummond writes on financial services from our Sydney newsroom.

Patrick Commins reports and comments on trends and news in domestic and global investment markets.

Clancy Yeates is deputy business editor. He has covered banking and financial services, and was previously national business correspondent in the Canberra bureau.