Banks pay huge dividends despite recession

For immediate release
Sunday, 10 January 2010

Banks pay huge dividends despite recession

Bank workers’ union Finsec is calling on the government to toughen its oversight of the Australian owned banks in light of revelations that shows the banks paid dividends to their parent companies in 2009 that were more than double what they earned.

In the financial year end 2009 the combined profits of the Australian owned banks was $790 million but they paid out over $1.7 billion in dividends or 222.8% of their profits.

“In a year in which bank staff were made redundant, jobs were sent offshore, mortgagee sales rose, some staff had their wages frozen, branches were closed and all the banks received tax payer support through the government guarantee schemes it is totally galling to see this huge amount of money being shipped back to shareholders,” said Finsec spokesperson Andrew Campbell.

“It is clear in our view that the banks have done much to protect their shareholders from the recession while doing nowhere near enough to assist getting the New Zealand economy back into growth by doing such things as keeping people in jobs and paying wage increases to all staff,” said Campbell.

“The government needs to toughen its regulation of the banks to include social responsibility and national interest measures to stop this immoral preference towards overseas shareholders over the local economy and staff,” said Campbell.

“Internationally regulators are getting tougher on bad banking practices. It is unthinkable for our government to do nothing while these profitable companies continue to behave with such disregard for the local economy.” said Campbell.

comparing bank profits and dividend payments.

ANZ National, Westpac, BNZ and ASB profit and dividend information

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Note: In 2008 the BNZ dividend was made up of $388 million in ordinary dividend, $300 million in special dividend paid on ordinary shares and $15 million in perpetual preference dividend. In 2009 the BNZ dividend was made up of $217 million in ordinary dividend and $35 million in perpetual preference dividend.

ENDS

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