Facing intense scrutiny at a Parliamentary hearing, ANZ New Zealand’s chief executive Antonia Watson defended the bank’s hefty $2 billion profit while farmers and homeowners grapple with financial hardships. She emphasized that profitable banks are essential for a successful economy and necessary to attract investment.
MPs Challenge Banking Profitability
“How can you justify such enormous profits when your customers are doing it really, really tough?” National Party MP Catherine Wedd pressed.
Watson responded, stating that ANZ’s return on capital is the minimum required to draw investment into New Zealand. She questioned the fairness of comparing ANZ’s profitability to overseas banks that have faced economic crises and aren’t covering their cost of capital.
Interest Rates and Household Burdens
Ryan Hamilton, another National Party MP, inquired whether ANZ had made any concessions to alleviate the impact of high interest rates on households.
Watson acknowledged the difficulties but maintained that the bank couldn’t shield customers from higher rates set by the Reserve Bank. “If we hadn’t raised interest rates, inflation would not have fallen,” she explained. She also mentioned support provided to communities after recent natural disasters.
Farmers Accuse ANZ of Unfair Practices
Members of the Primary Production Committee questioned whether ANZ was “milking farmers instead of cows,” highlighting the financial strain on the agricultural sector.
- Concerns Raised:
- High interest rates squeezing farmer profits.
- Perception that bank profits are prioritized over customer well-being.
- Calls for banks to share the burden during tough economic times.
Watson, alongside ANZ’s board chairman Scott St… [context incomplete], faced these accusations head-on, reiterating that profitability enables the bank to continue supporting the economy and its customers.
