Bank Profits Up Post GFC - Amongst World’s Most Profitable

Media release: FIRST Union
Friday 5 October, 2012

Bank Profits Up Post GFC Because They Amongst The World’s Most Profitable

New analysis showing the four big banks increased their collective profits even more following the global financial crisis than before it is not a surprise, given they are amongst the most profitable in the world, the bank workers’ union said today.

The Green Party has today released Parliamentary Library research showing the combined big four banks net profit before tax in the four years 2008 and 2011 was 14,421 million, up from 14,084 million in the four years 2004 to 2007.

These figures followed recent research from an international banking study showing the big four Australian banks, who dominate the New Zealand banking sector, are leading the world in profitability, said Andrew Casidy, Finance Secretary of FIRST Union.

“No one is suggesting our banks should run at a loss. But what New Zealanders need to question, is how the big four banks can make so much profit while the rest of the economy is struggling,” he said.

“This morning, and in the past, we have been told that bank profits are a good news story for the New Zealand economy.”

“But when households and the rest of the economy are struggling, there is a jobs crisis in our manufacturing sector, and our current account deficit is blowing out due to record bank profits returning to Australia, then the balance clearly isn’t right.”

“Australian banks do very well off their New Zealand customers, and they have an opportunity to repay that custom by investing more in New Zealand, through good jobs, higher levels of customer service and better support for local firms.”

Andrew Casidy said today’s figures follow new analysis from UNI Global showing that banks internationally are driving an trend of unrealistic rates of financial return.

Note:
BIS Annual Report 2011/2012, Section Post-crisis evolution of the banking sector, page 79, for figures on Australian banks profitability compared internationally.

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The National Distribution Union and Finsec joined forces in October 2011 to form New Zealand’s newest union – FIRST. The union represents over 27,000 people working in Finance, Industrial (Textile and Wood) Retail, Stores & Transport. http://firstunion.org.nz

ENDS

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