Bank of New Zealand (BNZ) has posted a $1.4 billion full-year profit, a 7% increase on the last financial year.
Key numbers for the 12 months ended September compared with a year ago:
- Statutory net profit of $1,414 million increased by $92 million (or 7%)
- Loans and advances to customers increased by $4.6 billion (or 4.9%) supported by home loan and business lending growth
- Customer deposits increased 4.3%
- KiwiSaver funds under management increased by $256 million, up 6%
- Total Capital Ratio 15.4% – more than $12 billion invested in New Zealand
- More than $600 million of payments to employees and more than $500 million in income tax paid in last 12 months.
BNZ chief executive Dan Huggins says over the past 12 months, BNZ’s business lending increased by $2.5 billion (6%).
The Government's under pressure to step in and tax some of the cream. (Source: 1News)
Recently, the country's largest bank, ANZ, posted a full-year profit of just over $2 billion - up 8%. Meanwhile, ASB had an 11% rise to $1.4 billion.
Westpac New Zealand also announced a billion-dollar full-year profit.
Finance Minister Grant Robertson said people would be "asking questions" when they "see the size of profits that banks" have gotten.
"This is a very difficult time for many people and - when they see the size of profits that banks have got - they will be asking questions about that."
Prime Minister Jacinda Ardern has also criticised banks for posting significant profits during the cost of living crisis, but says the Government doesn't have a solution.
"We don't currently have a policy prescription, and I don't have a straight off-the-cuff answer to the problem from Government. The point I'm making is not all solutions to these questions solely come from government," she said at a media conference.
Meanwhile, National leader Christopher Luxon said the profits would be "pretty tough to stomach" for Kiwis but that the "Government has to take accountability" for the situation.
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