There is a famous scene from the movie Wall Street where Michael Douglas, playing merchant wanker Gordon Gekko utters the unforgettable phrase greed is good.
Clearly the executives of ANZ Bank believe in this mantra. The Bank has just announced a $1.92 billion profit for the year to September 30, 2021. This is about 1% of the country’s Gross Domestic Product.
ANZ New Zealand has seen a 44 per cent increase in its profit rising to hit $1.92 billion for the year to September 30.
The country’s largest bank saw its cash net profit rise 39 per cent to $1.907 billion compared to the previous year.
ANZ New Zealand chief executive Antonia Watson said the results reflected record demand in the housing market, a stronger-than-expected economy and a significant reduction in provisions the bank put aside last year.
The profit is clearly related to surging house prices and the lending to kiwis of more and more money to buy the same houses off each other.
If ever there was an argument for urgent and fundamental changes to our banking system this must be it.