Banking sector sees massive profit increase, but uncertainty on the horizon

A piggy bank on its side with cash coming out.
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There's been a record breaking increase of profits in the banking sector, but it comes with a warning for the future.

A KPMG financial report found an increase of 11.2 percent, totalling the profits for the year at $5.77 billion.

KPMG spokesperson John Kensington wasn't surprised by the increase.

"The banks managed to grow the size of their loan books by about 6 percent, they also managed to increase their margin by about four basis points."

But Mr Kensington said the banks might not be celebrating just yet.

"Although they're sitting there just having very good results, they must be looking forward a little bit nervously to the upcoming year."

The global economy is currently unsettled, and Mr Kensington said events like the Australian banking review could have flow on effects.

"The global economy is uncertain at the moment, you have China and the US having a trade war, you have the UK involved in Brexit."