Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Larger bank profits worsen current account deficit

21 September 2006

*Larger bank profits worsen current account deficit*

Increased profits and offshore shareholder returns by the Australian owned banks are having a negative effect on the current account deficit says Finsec, the finance workers' union.

A factor in the worsening current account deficit is more money going out from New Zealand to investors overseas, compared with the amount of money coming in from foreign investments owned by New Zealanders.

For the six months to 31 March 2006 the four major banks declared a combined total profit of $1.445 billion, $103 million more than in the same six month period a year earlier; an increase of 7.7%.

"We are seeing New Zealand's overall economic wellbeing worsened by the Australian-owned banks sending higher profits back across the Tasman," said Finsec's Campaigns Director, Andrew Campbell.

"It's time the big Australian banks looked to retain a larger proportion of their earnings in their New Zealand subsidiaries. They can do this through investing more in their staff and their New Zealand infrastructure," said Campbell.

"If the banks can make a profit of nearly $1.5 billion off New Zealand customers in only six months, they can afford to invest more into New Zealand, helping to improve both the current account deficit and their service provision in this country," said Campbell.

"We believe the banks have an economic obligation to invest more back into New Zealand communities, staff and local infrastructure."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Fletcher Building: Norris Steps Down As Chair After New $486M Loss Provision

Ralph Norris will step down as chairman of Fletcher Building after the company took a further $486 million provision for project losses at its Building + Interiors unit and said 14 of the unit's 73 projects, worth $2.3 billion, are loss-making or 'on watch'. More>>

ALSO:

WWF: Concerns With Suggestion To “Scrap” Fishing Monitoring

“Our Pacific neighbours, like Fiji and the Solomon Islands, are making this work with far less economic resources than New Zealand. There’s no reason the government can’t get this done by October.” More>>

ALSO:

Greenpeace: Genesis’ Plan To Keep Coal Burning Until 2030 Stuns

Genesis Energy had previously promised to turn off its coal-fired units this year, however after a series of closed-door meetings with power companies including Meridian Energy, the deadline was extended. More>>

ALSO:

PM's Science Prizes: The Science That Saved Kiwifruit

Plant & Food Research is proud to be the recipient of this year’s Prime Minister’s Science Prize for its rapid response to the vine-killing kiwifruit disease Psa. More>>

ALSO:

NZ Government: Fund Encourages Lower-Emissions Technology

Businesses are being encouraged to adopt innovative technology that cuts greenhouse gas emissions in a funding round announced by Energy and Resources Minister Megan Woods today. More>>