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

Officials MIA on banking competition, say critics
Finance

Officials MIA on banking competition, say critics

Over-regulation of the banking sector is blamed for stifling competition.

Pattrick Smellie 20 Feb 2025
Heartland declares $49.6m impairment in NZ business
Finance

Heartland declares $49.6m impairment in NZ business

Heartland Group shares fell 12% in early trading.

Gregor Thompson 18 Feb 2025
Big banks scrubbing public mentions of DEI
Finance

Big banks scrubbing public mentions of DEI

Citigroup and others seek to avoid possible litigation and federal probes.

Toy entrepreneur quashes spec of NZME takeover
Finance

Toy entrepreneur quashes spec of NZME takeover

Zuru founder Nick Mowbray says a report speculating he could take over private media company NZME is wrong. On Friday morning, The Australian’s Data Room said “some wealthy Kiwis” were plotting to do something about the state of New Zealand’s media industry and cited Mowbray as a...

Victoria Young 14 Feb 2025