CHART: Australia's banks are collecting $12 billion in fees each year

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Banks collected almost $12 billion in fees, a rise of 2.8%, from households and businesses in 2014, according to the latest estimates by the Reserve Bank of Australia.

Fee income from households grew by 1.5% cent to $4.171 billion in 2014, the second year in a row of positive growth, as this chart shows:

Higher fee income reflected growth in credit cards and personal lending. Fees from housing lending and deposit accounts declined.

Fees from credit cards, which represents the largest component paid by households, increased by 5.9%, driven by a rise in the number of cards on issue and more foreign exchange conversion charges.

Total fees from housing loans decreased, mainly because of fewer penalty charges and strong competition between banks.

Fees collected from businesses grew 3.5% to $7.791 billion.

The Reserve Bank’s annual bank fee survey provides information on the fees earned by banks through their Australian operations through the provision of loans, deposit services and payment services.

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