Finance profits in the red

Profits are in decline across the financial services sector, while company profits are weak throughout the economy, new data from the Australian Bureau of Statistics shows.

Gross operating profits in financial services slumped 68 per cent over the June 2015 quarter alone on a seasonally adjusted basis, the ABS said yesterday.

On a trend basis, profits in financial services fell 33 per cent in the June quarter, following falls of 21 per cent and eight per cent in each of the two previous quarters.

The ABS estimated the financial services sector as a whole made a loss of A$795 million in the June 2015 quarter, after combined profits of in excess of $3 billion in each of the two prior quarters.

Company profits more broadly are weak, an indicator of rising impairments for lenders. The ABS said these fell 1.9 per cent in seasonally adjusted terms.

Profits fell ten per cent in mining, five per cent in construction and two per cent in transport.