Super tax pressed by Greens

Commonwealth Bank's interim profit took a day to stir up the debate over the size and relevance of bank profits again - including calls from an influential MP for a tax surcharge on bank profits.

Yesterday, in a media release, Adam Bandt described "the bank's CEO Ralph Norris' denial on Wednesday that the bank was not making 'super profits' as self-serving." He said that "ordinary Australians would disagree".

Bandt said he plans to have discussions with the government about bank reform and would continue to push for stronger action.

He is the sole Green in the House of Representative and his vote is vital in supporting the minority Labor government.

Bandt used his media release to press "the need for strong action, including the passage of the Greens' bill to deal with excessive ATM fees."

In a response Steven Münchenberg, the chief executive of the Australian Bankers Association, said that "banks are not making excessive profits.

"The standard measure of profitability - return on equity - shows banks are in the middle of the pack compared with other industries. Banks are currently more profitable than some industries and less profitable than others.

"There is no evidence that they are making excessive profits."

In its submission to the Senate inquiry into banking, before Christmas, the ABA cited data that shows the average return on equity of the companies in the ASX200 was 14.1 per cent.

The average ROE of listed banks was 14.8 per cent.

Three industry sectors exhibiting greater levels of profit were: consumer goods, with an average ROE of 17.8 per cent; telecommunications, 21.6 per cent, and resources, at 22.0 per cent.