Big banks grilled: What chiefs said about profits and house prices

One of Australia’s major banks has repeatedly denied any link between higher house prices and the bank’s profitability during a government grilling.

In a surprising update, Westpac chief executive Anthony Miller refused to acknowledge higher house prices led to the bank making more money.

“Say you sell the same volume of houses, you don’t make a greater profit if it’s a greater size loan? Liberal member for Cook Simon Kennedy asked at the House of Representatives Standing Committee on Economics hearing.

“You have more revenue but the profitability may not be more because you have a larger loan,” Mr Miller said in reply.

“You’re telling me when house prices go up you make more money?” Mr Kennedy said.

“To the extent we make more loans and larger loans we collect more interest, but that