BNZ annual profit tops $1.4 billion as income, lending and net interest margins rise. Completes quadruple of record annual profit for big 4 banks

with interest rate increases and the rising cost of living more New Zealanders are going to find it tough

It's almost like banks benefit the more society suffers.

My only hope is that all the banks do not start pleading poverty and in need of a taxpayer funded bailout in the next couple of years after all these massive profits. No way you can have a banking collapse on the back of these numbers.

Branch closure and cashless all happening at the same time. Try do a deposit over the counter and see what happens.

Doesn’t worry me as I hardly use cash anyway but goes to show things are changing fast in the back ground.

Somehow all three banks have bucked the trend on inflation with small increases in operating expenses (2-3%) in the previous financial year. The same has been observed in the financial releases from Woolies, Meridian Energy and Foodstuffs.

While SMEs crash and burn under high inflation, oligopolies have the market power to pass on the full COGS increase to customers and also cut back on operating expenses.

Today morning on brealfast show, National leader was grilled and had no response for WHY IS HE NOT HAPPY IF BANKS ARE IN PROFIT AS PRIVATE BIG ENTITY and he had no answer.

Government and RBNZ should be blamed specially FLP, what stopped Mr Orr from stopping FLP. Jacinda Arden raising concern that banks are profitable should also raise a question for if banks are in losses, financial system may fall specially with no deposit protection insurance in NZ.

When PM and her ministers are raising question on bank profitability are actually highlighting their ineffency and frustration.

show some love, throw a TD out at 6%..thks

I guess its hard to lose money when your overheads have dropped due to cutting staff and closing branches and reducing the remaining branch hours to a third of what they were pre-covid.

Today the 2 year bond rate stands at 4.65%. We borrow money on the international markets at 4.65%. Paid for by the NZ taxpayer. The RBNZ lends money to Australian banks at 3.5% via the FLP. Yes we are paying them 1.65% to borrow money from us. 

Today they then lend that money to NZ tax payers on a 2 year fixed mortgage at 6.09%. They make 2.59% for lending us our own money.

Corruption in plain sight. The RBNZ is not operating in the interests of the NZ taxpayer, it is operating in the interests of foreign banks. For this situation that should be rewarded with being tarred and feathered and banished to a gulag., We give our governor a 5 year extension at nearly a million a year. I say tear down the existing structures if this is the corruption it spawns.

It would be interesting to see the stats on:

Average profit per NZ Company operating in NZ.

Verses

Average profit per Australian Company operating in NZ.

Question. We are reading a lot about corporates making record profits this year, being up X% on last year's earnings etc. 

I don't have capacity to fully make sense of these reports. 

Do these record profits account for the inflation (covid spending printing binge). If their profits are up say X% on last year (arbitrary number). And inflation is more than that. Then haven't they actually lost money in real terms? 

If that is the case, then all these Mainstream media articles aren't accurate to say the least..

The banks have certainly made some tidy profits but how would they go if a bank run hit them? They paint a picture that inaccurately reflects their true position in the market place. The more they support the hiking of rates...the more they expose themselves and their clients to risk.

I have never managed to get property. The one time I'm grateful for that (no mortgage to worry over). But I do have kiwisaver.. When do you all think they will come for our Kiwisaver savings?



This all has an Ayn Rand Atlas Shrugged feel to it (not the movie lol)..  

Not a good year....lol   Moneys sinking into a big hole everywhere...Billions of dollars ACC, NZ Super ,Kiwisaver. Wont post a link but its not a good year....info is 'common knowledge'...think of it as the 1 in 7 that might turn into somewhat longer than many forecast...."My dog Sam eats purple flowers" ('Draggin' the line'...Tommy James)

reposting this in the hope some expert advises ha.. 

Sorry probably being dumb dumb asking this.. But have a question regarding corporate and bank profits being announced on media. The articles never seem to speak about real term value vs last year. Does it matter?

Scenario:

Say companyX last year made $100 profit. This year they made $110 profit. 

$10 more than last year. A 10% increase in profit. 

But inflation was 20%. 

Shareholder gets $110 dollars to spend.

But that $110 is worth less in buying power than the previous years $100 profit. 



 

So wouldn't the real profit be less than what it looks like on paper? Seems like a unidimensional perspective when they don't consider the decreased value of money in these news articles. 

Seems frequently designed to sell a marxist perspective on reality perhaps (not saying we don't have problem with current state corporations, my beef is with offshore. Fix that and we remove a lot of hidden wealth