Banks cashing in? Commerce Commission highlights profit concerns
Banks are the next organisations in the Commerce Commission’s spotlight – and it has already indicated that they appear to be making big profits.
The competition watchdog has released its preliminary issues paper in its market study, seeking feedback.
As part of that, it made several early observations about the state of competition in New Zealand’s banking sector.
The Commerce Commission were too weak and spineless to deal to the Supermarket Duopoly, they will do jack shit to the Banks.
While any actual regulation is laughed at, another NZ Banks rakes in billions in profits…
Major bank records net profit of more than $1.5 billion
ASB has reported a net full-year profit of $1.56 billion for the 12 months to June 30 this year.
It’s a 6% increase on the previous year and was boosted by a wider interest margin and lending and deposit growth.
The bank’s chief executive Vittoria Shortt said the result reflects a strong first half, with performance softening for the six months to June 30.
She said ASB is seeing clear signs that growth is slowing, which is a reflection of the current economic environment.
“However, our balance sheet remains strong and resilient which positions us well to continue to support our customers and the New Zealand economy.”
…ANOTHER OBSCENE PROFIT FOR BANKS?
Come on people!
The Australian Banks make more here than they do in Australia because they price gouge us and are pimps fuelling the property speculation!
Asking if Bank profits are ‘excessive’ misses the point – with 27 000 on emergency housing wait lists, 100 000 food parcels a month & underfunded health, education & welfare social infrastructure collapsing, Bank profits are obscene!
Windfall tax those rich pricks!
If you are going to turn a blind eye to the obscene profits made by foreign banks using the rigged casino of oligopoly can we all at least agree on one thing, that when the economy predictably ruptures this year and the corporate banks come to the Government with their giant golden begging bowl, encrusted with diamonds, emeralds and sapphires, carried into the room on the backs of homeless children, when the 4 big Foreign Banks come begging to be bailed out, we collectively tell them to go fuck themselves right?
Surely you simpering gimps sucking up to the banks by refusing to tax their obscene profits can collectively agree not to bail these greedy pricks out when the economy goes belly up right?
RIGHT?
Look at how the wealthy and rich are rushing to support the Right…
…Bernard Hickey has argued, “We could have gotten $200 billion in extra tax revenues if only there had been a fair tax system which meant that capital gains were taxed at the same rate as every other type of income.”
In a liberal progressive democracy, it doesn’t matter what role you play in the complex super structure of our society and economy.
It doesn’t matter of you are a garbage collector, a dr, a nurse, a drain layer, teacher or tradie – if you all stopped doing your jobs the system can’t work.
Everyone deserves to share the collective harvest of civil society with public services and policies focused on the public good enshrined in the intrinsic civil liberties each individual has.
Wealthy individuals who become mega rich thanks to the landscape generated by those values are required to pay more back into the system they have benefited from beyond the bare necessity of ruthless accountancy practices.
These rich pricks have designed the system for themselves, ‘you can’t tax unrealised capital gains’ the Right scream, like bullshit we can’t!
Council rates are based on valuation and you can borrow against that capital gain.
If it means the mega rich have to sell a mansion or two to pay the tax bill, so fucking be it!
There are 14 Billionaires in NZ + 3118 ultra-high net worth individuals, let’s start with them, then the Banks, then the Property Speculators, the Climate Change polluters and big industry.
Aking these levels of extreme profit right before the looming recession of late stage capitalism is an outrage!
Forget Canary in the Coal Mine, NZ is the Kiwi in the minefield
Next month the books are opened and the scale of exposure to the Chinese slowdown will be made painfully apparent to a shocked electorate.
Global markets will be watching our imploding economic situation as evidence of a slowdown in China that is far more bleak than being currently appreciated.
The post covid death and serious illness rates are far more damaging than China admitted, the property industry has simply become more destabilised and indebted while the geopolitical tensions with America keep ratcheting up.
Let’s not forget the catastrophic climate events that are burning and drowning China at the same time.
China has become one of our largest trading partners, but their new mega dairy farms are supplementing their need for our product.
We put all our cows in one Beijing Paddock thanks to John Key who is out there once again singing the praises of his Chinese Overlords.
When our books are opened it will expose how vulnerable NZ is to China’s downturn and that downturn is far worse than the Market is currently try pricing in.
Expect a heavy stock market drop as cash gets sucked overseas which will hurt many KiwiSaver accounts as inflation continues to burn.
We are in for an enormous economic reckoning and voters aren’t prepared.
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Digital Currencies-Social Credit monetary, cash replacement system is coming!
The US monetary system is going to collapse because they’re not able to pay their debts, $33t at $1t of interest payments about to kick in.
And the world’s largest Ponzi economy is stalling and heading for recession.
They can’t print any more USD, nobody is buying Treasury Bonds, they’re all dumping them too but can’t find any buyers!
They ain’t gunna pay so they’re going to dump the USD because that’s dying too as the reserve currency because of the competition from the BRIICS+ and OPEC and other oil producers are dumping the USD oil trade.
They’ll be knocking on everyone’s door and will be pointing a gun at them saying,”You with us or….”
All within the next 3 years.
Read The Mandibles, by Lionel Shriver. A novel about this scenario, probably prophetic.
Its just one part of a perfect storm that’s heading our way. Pretty worrying but virtually unavoidable. The only uncertainty is timing. On the economic side they will stave it off for as long as possible but its inevitable. As are a few other things.
If the ASB has capital of $11.1b and made a profit of $1.56b is that a return on capital of over 11%. All going overseas. Perhaps a graduated company tax system or a windfall tax is not unreasonable. Meanwhile I’m glad I bank local with the TSB.
If the ASB has capital of $11.1b and made a profit of $1.56b is that a return on capital of over 11%. All going overseas. Perhaps a graduated company tax system or a windfall tax is not unreasonable. Meanwhile I’m glad I bank local with the TSB.
Every province used to have its own mutual trustee bank (i.e. member owned, with every depositor being an equal part-owner). Nearly all accounts for individual depositors were either with the (taxpayer owned) Post Office Savings Bank or a mutual trustee savings bank — that is to say, the system was owned by every citizen.
There was no referendum asking citizens whether they wanted the Martin Place financiers to take over the P.O. Savings Bank or the trustee savings banks. The members were simply denied any control over the bank they themselves owned. The Minister of Finance ended up with control over the trusts where the sale proceeds went (and still appoints the trustees to this day). No A.G.M. vote asking member permission for the sale, no cheques made out to members dividing the proceeds, and now a years-long press blackout of any ongoing discussion regarding this sordid affair.
This right here is the true measure of Labours (and it would be National similarly if they were in Goovt) ineptitude. $5 Billion from 4 banks would aid the country tremendously and harm virtually noone. 0.0001 of voters would ever squeal about it but they just let it past. And then it was raised again and they let it past, again and again.
Shows who their true Masters are.
Same with the Covid cash, all the business owners I know in our circle of industry reaped a windfall, mostly from worker subsidies but also from being rushed off their feet with all the money government was pumping out. To make these mistakes in a crisis is perhaps forgiveable but to not go and get the cash back is unforgivable. Just talking anecdotally, I wouldnt be at all surprised if 75% of the businesses who received subsidies didnt need them. Many, many, many had bumper years in 2021 and 22.
And yes, I know they have got a fraction of the money back but there is still at least 1 Billion that should be returned to the Govt which never will be.
” It doesn’t matter of you are a garbage collector, a dr, a nurse, a drain layer, teacher or tradie – if you all stopped doing your jobs the system can’t work ”
Bomber all of these working people and many others have to work to keep from drowning or joining so many who are already destitute and I include many of our elderly folk who seem to be invisible in the current economic maelstrom.
Most of these workers aren’t a member of a Union that historically would be an insurance policy against the economic warfare being waged against them.
Bomber your mate Chipkins the PM of a majority Labour government said NO to any action against the banks and appointed a toothless South African as a grocery commissioner who was appointed because he has grocery experience on how to thieve money from New Zealanders on what will be a lucrative salary package to ensure that duopoly continues financially rape and extort some many of our vulnerable citizens and children !
Those C.E.O salaries you highlighted are an indictment and an outrage because those blood suckers are getting paid and applying pressure by way of silent blackmail to avoid any move against them by claiming that if they do not make these profits that will mean a weaker banking sector.
This is neo liberalism at its most evil and there is no one standing against them.
Certainly not the NZLP or the National party.
Martyn – Unhappy reading
National got us through rge GFC Thankfully it looks like they will be in power to weather the next crash.
It may be a wet dream to let the banks fail but it would lead to civil unrest on a scale not seen before .
The banks are riddled with corporate greed. They ditch unprofitable customers, whack people with fees that arent justified, and impose crippling interest rates on mortgage holders.
But, you think that profit is the only thing that matters, and you are prepared to see people plunged into hardship so someone can make a profit.
The posters on here are a bunch of cucked bootlickers. They love the banks and think they can do nothing wrong.
The whole system is shit.
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