Bank profits continue to surge higher, with Westpac announcing an increase of 13 percent.
This follows a 25 percent rise for ANZ and 20 percent for BNZ.
So are our banks making excessive profits? Bankers Association chief executive Kirk Hope says the profits are result of the Government's "prudent" fiscal management", which has kept New Zealand's economy strong.
"It's probably a preferable outcome to the opposite, which is what we're seeing in Europe," he said on Firstline this morning, "where there is continued malaise, businesses are unable to get lending to help grow the economy and there are real problems."
Banks are making most of their money through reduction in bad debts, growth in lending and deposits, and focusing on "expense management" – self-service options, for example.
Watch the video for the full interview with Kirk Hope.
source: newshub archive
