(12 November 2012 – New Zealand) It has come to light Australian banks made NZ$772 (A$604) profit for every person in New Zealand this year, with most of it heading back to Australia.There has been outcry from unions and the Green Party, who said the big Australian banks are milking the New Zealand economy, which is already struggling.
Despite economic headwinds, Bank of New Zealand (BNZ), ANZ, Westpac and ASB reported a combined NZ$3.4 billion profit after tax in New Zealand, up an average 20 percent on 2011.
The biggest bank, ANZ, reported a record NZ$1.27 billion profit, exceeding the unprecedented windfalls in the lead-up to the global financial crisis.
Green Party co-leader Russel Norman told Fairfax NZ the sheer size of profits was unjustifiable – banks are a domestic service that should roughly reflect the financial health of their customers.
While many New Zealand families and businesses are still struggling after the global financial crisis, banks were reporting “super” profits he said.
“They insulated themselves because of their dominant position in the market at the expense of everyone else,” Dr Norman said.
Far from being good for the economy, such big profits were generated by putting New Zealand further into debt. ‘What is good for the bank is as much debt as humanly possible, and that is not what is good for this country.’
ANZ had a profit of NZ$1.27 billion, up 17 percent on 2011, the bank paid NZ$479 million in taxes, down by NZ$28 million and had reduced staff in the country by 300.
BNZ’s profit was up 21 percent to $741 million, paying NZ$279 million in taxes – up NZ$14 million.
Westpac made a 22 percent leap in profits from 2011, making NZ$707n million, paying NZ$273 million in tax which had increased by NZ$26 million.
ASB made a record NZ$685 million profit, up 21 percent and paid NZ$262 million in taxes, an increase of NZ$16 million.