Banks are hanging tough despite tough economic conditions.
A KPMG report has found the sector's net profit for 2024 increased just 0.25 percent from the previous year.
Newstalk ZB senior political correspondent Barry Soper says this still adds up to $7.22 billion.
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Speaker 1 (00:00):
News talks here b Barry Soapers he has senior political correspondent.
Good afternoon, Barry, afternoon, Ran, good to see you. Now
you've been having a look at two at this KPMG
report on our banking sector, the margins that we pay,
the margins that our banks earn here versus Australia, well.
Speaker 2 (00:15):
Not only Australia, other countries as well. We're in the
middle to upper end in terms of the bank's profitability
if you look at because we've got four big Australian
banks operating in this country. Of course, they last year
made a net profit of seven point two two billion dollars,
(00:37):
which is extraordinary.
Speaker 1 (00:38):
But they're big, they're big outfit.
Speaker 2 (00:40):
Well no, no, but that's what they keep telling us.
Speaker 1 (00:42):
They're tens of thousands of employees.
Speaker 2 (00:44):
Yes they have all that, Yes, I know. And the
chief executives are back before the Select Committee at Parliament
this week. They're crying poor on their are three million
dollar salaries. I mean, it's a really tough area out there.
But if you look at the banks, the margin is
two point three four percent. Now that's the difference. The
(01:07):
ocr is three point seventy five percent. So that's what
they buy their money at and their margin is two
point three four percent, which would give you an interest
rate of around I guess six percent, and that's what
we should be paying in our mortgages. But you know,
I don't think everybody's paying well, we're probably getting closer
to six percent.
Speaker 1 (01:29):
It depends what sort of It depends on your situation,
isn't it how much you're borrowing and what you.
Speaker 2 (01:33):
Will well, yeah, right. The biggest problem here if you
listen to the banks, and it's been reflected by some
in political circles as well, is the capital that they
have to retain to make sure that if times do
get tough, that the depositors funds will be looked after
and the like. So when you look at other countries,
(01:55):
it's pretty high in New Zealand, mainly because our economy
is an a pretty risky state.
Speaker 1 (02:01):
At the moment, that's right, and we're a small country
and we're one earthquake away from everything going to hell
in a handbasket. So you know, yes, they might be
making a little bit more money here, but they in theory,
we are safer here because they've got the capital.
Speaker 2 (02:15):
But no bank has fallen over here either, and The
thing is that with the new governor of the Reserve
Bank coming in, because the Reserve Bank sets those capital requirements,
maybe they'll be a bit more liberal than certainly that
would appease some of the political circles.
Speaker 1 (02:29):
Now, speaking of political circles, and she did it again.
This is on with on Breakfast on Hosking this morning.
Her foot firmly buried in her mouth was what.
Speaker 2 (02:41):
I couldn't believe it when I heard it. It was
like regular slot on Wednesday, Mark Mitchell with Mark Mitchell.
She was moaning about what a waste time the eighty
hours were for hearing submissions on the Treaties Principal Bill
when it was going to be voted down. Well, it
was a great, great piece of radio in my you
the woman Chris Hopkins rates promoting Ginny Anderson to Labour's
(03:04):
finance team last week and making her responsible for treaty negotiations,
made a fool of herself when taking issue with Mitchell
over the Treaties bill. Ever, listen, Labor took some of
the bills through themselves when they're in Parliament.
Speaker 1 (03:18):
That got killed off as well.
Speaker 3 (03:19):
So but I think that you name it was.
Speaker 2 (03:24):
A treaty it was a treaty Principal's Bill that Labor
brought into the House as well through the process.
Speaker 1 (03:29):
Making it.
Speaker 2 (03:31):
Then check your history, don't You don't even know the
treaties negotiated.
Speaker 4 (03:40):
Didn't know.
Speaker 2 (03:42):
I was right.
Speaker 3 (03:42):
Labor did not support it, honestly.
Speaker 2 (03:45):
That was her coming back after the break. So I
was right all along. Well, in fact, Jenny, go back
and have a listen, as all our listeners have heard,
you were wrong.
Speaker 1 (03:58):
He just finally the Maori Party, staying on a similar
vein head the Malori Party goes into bat for finner
order agencies. These are the ones who've lost their contracts.
We've heard about it in the last couple of days.
One of them, of course, belongs to or is run
by John Tammaheady, their president.
Speaker 2 (04:14):
It's a big it's a big contract and the person
firing the questions today was the Maori Parties co leaded
every rewa Packer. She was accused in parliament today of
asking questions on behalf of her party's president, John Tamma Harry,
who had one of the big contracts. But Louise Upston,
(04:35):
standing in for the minister, says the transition to the
new providers will be very carefully managed.
Speaker 3 (04:41):
The Department of Prime Minister in Cabinet and the Public
Service Commission are working closely with Tapun Corkery to manage
the transition and to ensure a smooth continuity of service
for the final receiving services.
Speaker 4 (04:54):
Who does a provider that has banked over one hundred
million dollars in profit not suggest that the taxpayers money
has not gone for the purposon which was given in
the first place.
Speaker 3 (05:02):
This is a process that Puny Corcady have run. As
recommended by MB that every contract that the government has
should go to market every four to five years to
test the market to see if there are other providers available.
Speaker 4 (05:15):
We've got a member asking pointed questions about a process
in which one of the major losers appears to be
a prominent member of her own political party. I just
wonder if there's any need to declare such a conflict
of interest before asking such questions.
Speaker 2 (05:30):
Well, the Speaker decided there wasn't any need to do it,
And I didn't planny of Nriwapacker's questions because they are
all superficial really, and they didn't elicit anything but the
fact that she's clearly upset about the contract being lost,
and there is certainly, in my view, something of a
conflict there when you consider she's asking about a contract
(05:54):
that or one of the contracts that was held by
the party president.
Speaker 1 (05:58):
John tammytink you, reckon, Verry, Thank you for that. Barry Soper,
Senior political correspondent Here at news TALKSZB.
Speaker 2 (06:05):
For more from Heather Duplessy Allen Drive. Listen live to
News Talks IT'B from four pm weekdays, or follow the
podcast on iHeartRadio.
News talks here b Barry Soapers he has senior political correspondent.
Good afternoon, Barry, afternoon, Ran, good to see you. Now
you've been having a look at two at this KPMG
report on our banking sector, the margins that we pay,
the margins that our banks earn here versus Australia, well.
Speaker 2 (00:15):
Not only Australia, other countries as well. We're in the
middle to upper end in terms of the bank's profitability
if you look at because we've got four big Australian
banks operating in this country. Of course, they last year
made a net profit of seven point two two billion dollars,
(00:37):
which is extraordinary.
Speaker 1 (00:38):
But they're big, they're big outfit.
Speaker 2 (00:40):
Well no, no, but that's what they keep telling us.
Speaker 1 (00:42):
They're tens of thousands of employees.
Speaker 2 (00:44):
Yes they have all that, Yes, I know. And the
chief executives are back before the Select Committee at Parliament
this week. They're crying poor on their are three million
dollar salaries. I mean, it's a really tough area out there.
But if you look at the banks, the margin is
two point three four percent. Now that's the difference. The
(01:07):
ocr is three point seventy five percent. So that's what
they buy their money at and their margin is two
point three four percent, which would give you an interest
rate of around I guess six percent, and that's what
we should be paying in our mortgages. But you know,
I don't think everybody's paying well, we're probably getting closer
to six percent.
Speaker 1 (01:29):
It depends what sort of It depends on your situation,
isn't it how much you're borrowing and what you.
Speaker 2 (01:33):
Will well, yeah, right. The biggest problem here if you
listen to the banks, and it's been reflected by some
in political circles as well, is the capital that they
have to retain to make sure that if times do
get tough, that the depositors funds will be looked after
and the like. So when you look at other countries,
(01:55):
it's pretty high in New Zealand, mainly because our economy
is an a pretty risky state.
Speaker 1 (02:01):
At the moment, that's right, and we're a small country
and we're one earthquake away from everything going to hell
in a handbasket. So you know, yes, they might be
making a little bit more money here, but they in theory,
we are safer here because they've got the capital.
Speaker 2 (02:15):
But no bank has fallen over here either, and The
thing is that with the new governor of the Reserve
Bank coming in, because the Reserve Bank sets those capital requirements,
maybe they'll be a bit more liberal than certainly that
would appease some of the political circles.
Speaker 1 (02:29):
Now, speaking of political circles, and she did it again.
This is on with on Breakfast on Hosking this morning.
Her foot firmly buried in her mouth was what.
Speaker 2 (02:41):
I couldn't believe it when I heard it. It was
like regular slot on Wednesday, Mark Mitchell with Mark Mitchell.
She was moaning about what a waste time the eighty
hours were for hearing submissions on the Treaties Principal Bill
when it was going to be voted down. Well, it
was a great, great piece of radio in my you
the woman Chris Hopkins rates promoting Ginny Anderson to Labour's
(03:04):
finance team last week and making her responsible for treaty negotiations,
made a fool of herself when taking issue with Mitchell
over the Treaties bill. Ever, listen, Labor took some of
the bills through themselves when they're in Parliament.
Speaker 1 (03:18):
That got killed off as well.
Speaker 3 (03:19):
So but I think that you name it was.
Speaker 2 (03:24):
A treaty it was a treaty Principal's Bill that Labor
brought into the House as well through the process.
Speaker 1 (03:29):
Making it.
Speaker 2 (03:31):
Then check your history, don't You don't even know the
treaties negotiated.
Speaker 4 (03:40):
Didn't know.
Speaker 2 (03:42):
I was right.
Speaker 3 (03:42):
Labor did not support it, honestly.
Speaker 2 (03:45):
That was her coming back after the break. So I
was right all along. Well, in fact, Jenny, go back
and have a listen, as all our listeners have heard,
you were wrong.
Speaker 1 (03:58):
He just finally the Maori Party, staying on a similar
vein head the Malori Party goes into bat for finner
order agencies. These are the ones who've lost their contracts.
We've heard about it in the last couple of days.
One of them, of course, belongs to or is run
by John Tammaheady, their president.
Speaker 2 (04:14):
It's a big it's a big contract and the person
firing the questions today was the Maori Parties co leaded
every rewa Packer. She was accused in parliament today of
asking questions on behalf of her party's president, John Tamma Harry,
who had one of the big contracts. But Louise Upston,
(04:35):
standing in for the minister, says the transition to the
new providers will be very carefully managed.
Speaker 3 (04:41):
The Department of Prime Minister in Cabinet and the Public
Service Commission are working closely with Tapun Corkery to manage
the transition and to ensure a smooth continuity of service
for the final receiving services.
Speaker 4 (04:54):
Who does a provider that has banked over one hundred
million dollars in profit not suggest that the taxpayers money
has not gone for the purposon which was given in
the first place.
Speaker 3 (05:02):
This is a process that Puny Corcady have run. As
recommended by MB that every contract that the government has
should go to market every four to five years to
test the market to see if there are other providers available.
Speaker 4 (05:15):
We've got a member asking pointed questions about a process
in which one of the major losers appears to be
a prominent member of her own political party. I just
wonder if there's any need to declare such a conflict
of interest before asking such questions.
Speaker 2 (05:30):
Well, the Speaker decided there wasn't any need to do it,
And I didn't planny of Nriwapacker's questions because they are
all superficial really, and they didn't elicit anything but the
fact that she's clearly upset about the contract being lost,
and there is certainly, in my view, something of a
conflict there when you consider she's asking about a contract
(05:54):
that or one of the contracts that was held by
the party president.
Speaker 1 (05:58):
John tammytink you, reckon, Verry, Thank you for that. Barry Soper,
Senior political correspondent Here at news TALKSZB.
Speaker 2 (06:05):
For more from Heather Duplessy Allen Drive. Listen live to
News Talks IT'B from four pm weekdays, or follow the
podcast on iHeartRadio.
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