Visa brought multimillion profits to Australian banks

Sale of a part of National Australia Bank's holding into initial public offer (IPO) of Visa resulted in a real windfall. As one can remember last week Visa raised around $US18 billion ($19.61 billion) after the biggest IPO in the history of New York Stock Exchange and the USA itself. Owing to this fact National Australia Bank said that its after-tax gain is expected to be 181 million and $40 million arising in its Australian and New Zealand businesses respectively that add up to $221 million.

According to the bank's statement the majority of the gain would be offset through the creation of a one-off central bad and doubtful debt provision against the current uncertain global economic environment. The remainder will be used for development of online banking.

But NAB was not the only one to get a gain from Visa. So, Commonwealth Bank of Australia having sold 51% of its shares in Visa can expect pre-tax gain of approximately $355 million.  

Gain of the fifths largest banks of Australia St George Bank is expected to be $75 million, Westpac Banking Corporation's $270 million and the profit of ANZ Banking Group is $350 million.

Aynny, reporter of Ecommerce Journal