Otago Daily Times

ANZ profit higher than big eight combined

- TAMSYN PARKER

AUCKLAND: ANZ’S New Zealand business made more money than Fonterra, Spark, Fletcher Building, the Warehouse, Air New Zealand and the major supermarke­ts combined last year and it is not good enough, according to activist investor Sam Stubbs.

ANZ New Zealand announced a record net profit of $1.98 billion yesterday morning — while its parent company Australia and New Zealand bank made $A6.4 billion ($NZ6.9 billion).

But Mr Stubbs, founder and managing director of KiwiSaver provider Simplicity, and a critic of the banks, said ANZ was taking advantage of its dominant position to extract unreasonab­le profits.

‘‘The ANZ profit is classic rentseekin­g behaviour.’’

Mr Stubbs said the bank — which is the largest in New Zealand — was just one company yet its profit was more than eight of New Zealand’s biggest names and almost twice that of the top seven power companies combined.

New Zealand’s largest company by revenue, dairy cooperativ­e Fonterra, made $745 million last year while telco Spark had a profit of $418 million.

Air New Zealand made $382 million and Fletcher Building $105 million.

Woolworths, which owns the Countdown supermarke­t chain, made $155.9 million. Foodstuffs North Island and South Island — parent of Pak’nSave and New World — had a combined net profit of $25.8 million.

The Warehouse Group made $20.7 million.

Mr Stubbs said ANZ made $416 of profit for every man, woman and child in New Zealand yet the bank was shutting down branches and reducing staff.

Figures from its financial report show the bank reduced its New Zealand headcount by 207 fulltime equivalent staff this year to 6165.

In September, the bank received strong criticism from Martinboro­ugh residents and businesses for plans to shut its branch.

That did not stop the bank from shutting up shop on October 19. That followed branches in Wairoa, in Hawke’s Bay, and Wainuiomat­a, near Wellington, this year.

Mr Stubbs said New Zealanders should vote with their feet and start paying more attention to the costs and fees they were paying the banks.

‘‘Everyone wants to have healthy and profitable banks. But New Zealanders are being taken advantage of.’’

He also urged the Government to beef up Kiwibank and give it more capital to allow it to better compete with the Australian­owned banks.

In releasing its result, ANZ went out of its way to point out its contributi­on to New Zealand.

In the year to September 30, it paid $760 million in corporate tax, which it says is more than 5% of New Zealand’s corporate tax take.

It also paid $810 million in staff wages and salaries and $540 million to local contractor­s and suppliers.

ANZ said $67 million in dividends was paid to about 16,800 New Zealand shareholde­rs and managed funds, while $15 million was made in sponsorshi­p and charitable donations. — NZME

 ??  ?? Sam Stubbs
Sam Stubbs

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