Banks are close to making $10b in profits, but do they deserve it?

Banks are close to making $10b in profits, but do they deserve it?
Lending is a two-way street, not a one-way dead-end. (Image: Unsplash)
Cameron Bagrie
Ten billion dollars. Is that number going to be reached when we see the next lot of pre-tax bank profits? I suspect it is.Strong income, low costs and the lows in the credit cycle are a powerful combination.Banks are large enterprises and, yes, they should make significant profits. But those profit figures should make us ask some hard questions.Do banks take enough risks? The financial metrics say: not really.How can we screw the scrum towards more productive lending? What are the barriers?Do borrowers show enough skill in managing and taking r...

More Finance

PEP seeking payday from UP Education
Finance

PEP seeking payday from UP Education

UP Education is a NZ success story in Australia.

Pattrick Smellie 23 Apr 2025
FNZ extends controversial catch-up offer
Finance

FNZ extends controversial catch-up offer

Fintech FNZ has extended its deadline for “catch-up” equity offers, as employee shareholders say discontent grows.In March, the global fintech offered its class B shareholders a “catch-up” offer after it revealed their holdings could be massively diluted following its August capi...

Victoria Young 16 Apr 2025
The cost of over-regulated banking: $10b to $14.4b a year
Finance

The cost of over-regulated banking: $10b to $14.4b a year

Critics claim a huge annual cost from 30 years of regulatory creep.

Pattrick Smellie 16 Apr 2025
Blackbull backs Eden Bradfield into Elevation funds
Finance

Blackbull backs Eden Bradfield into Elevation funds

The Christopher Swasbrook-established fund gets new investors and portfolio manager.