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Topic # 242499 31-Oct-2018 14:12
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Interested in what the Geeks think here.

 

Is $2B profit ridiculous bearing in mind we do want a healthy banking sector?

 

To me it seems like corporate greed.  


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  Reply # 2117401 31-Oct-2018 14:22
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don't banks (and any other business) exist to make money for its owners? 

 

we are not living in communist country to share hard earned. and I'm sure ANZ has it's community/public programs to help community. But does it have to do these programs, nope.





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  Reply # 2117404 31-Oct-2018 14:25
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Two billion is meaningless. How much of a return on investment does it equate to?


 
 
 
 


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  Reply # 2117411 31-Oct-2018 14:36
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It's a fairly solid ROE that is certainly not excessive, and pretty much in line with best case for a bank.

 

It certainly puts them in a good position to weather the next financial collapse if/when that does happen.

 

I'm interested by know why you think it's corporate greed - what is the basis for that? and what data is the comment based on? Or is purely because it's a large amount of money?

 

 


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  Reply # 2117459 31-Oct-2018 15:23
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DarthKermit:

 

Two billion is meaningless. How much of a return on investment does it equate to?

 

 

Return on total capital is about 9.1%.  ROE is 11.7%.  Ploughing through the reports to get it is a mind numbing exercise.  Luckily someone has done it for you.

 

https://www.sharetrader.co.nz/showthread.php?9513-ANZ-NZX-Anyone-holding/page38


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  Reply # 2117462 31-Oct-2018 15:33
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Is $2B profit ridiculous bearing in mind we do want a healthy banking sector? No it is not given the size of the organisation, assets = circa A$800 to A$900 Billion

 

To me it seems like corporate greed.  Not greed, a healthy banking system with good financial backing is good.





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  Reply # 2117497 31-Oct-2018 17:31
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MikeB4:

 

Is $2B profit ridiculous bearing in mind we do want a healthy banking sector? No it is not given the size of the organisation, assets = circa A$800 to A$900 Billion

 

To me it seems like corporate greed.  Not greed, a healthy banking system with good financial backing is good.

 

 

Where did the $800-900 billion figure come from?  Market capitalisation of ANZ banking group is about = NZ$100 billion.

 

The $2 billion profit was for their NZ operations alone!  

 

Bank profits per capita are apparently 25% higher in NZ than in Australia, where the interim report from the Royal Commission finds:

 

 

“Banks and other financial institutions have put profits before people, greed has been the motive as short-term profits have been pursued at the expense of basic standards of honesty. Too often simply selling products has become the sole focus of attention.”

 

Mr Frydenberg said the culture and conduct was reflected in the banks’ remuneration practices, with “almost every piece” of misconduct identified in the report “connected directly to some monetary benefit”.

 

You'd have to be extremely naive to believe that the Aussie banks operating in NZ manage to achieve higher profits here than they do over there - but "everything is fine in NZ".


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  Reply # 2117498 31-Oct-2018 17:38
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Does not surprise me, although the number seems low..

 

@michaelmurfy loves to comment on these ones!





#include <std_disclaimer>

 

Any comments made are personal opinion and do not reflect directly on the position my current or past employers may have.


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  Reply # 2117502 31-Oct-2018 18:00
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@Fred99 The A$800-A$900 billion figure is for the ANZ Group





Mike
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The views stated in my posts are my personal views and not that of any other organisation.

 

 Mac user, Windows curser, Chrome OS desired.

 

The great divide is the lies from both sides.

 

 


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  Reply # 2117505 31-Oct-2018 18:06
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sbiddle:

 

I'm interested by know why you think it's corporate greed - what is the basis for that? and what data is the comment based on? Or is purely because it's a large amount of money?

 

 

Maybe because ANZ have been doing some dodgy things!

 

https://www.nbr.co.nz/article/anz-recommends-540000-nest-egg-all-be-invested-anz-products-jr-p-215161

 

Advice an ANZ Bank representative gave to an investor would have seen all or most of that person’s $540,000 nest egg invested in ANZ products.

 

The brochure says that in selecting investments, “we are not influenced and are not likely to be influenced by our relationship with ANZ group companies or other areas of our business. Therefore, we have no conflicts of interest in our investment selection process.”

 

 

 

Other than that, I agree with you. Some people just look at large sums of money but don't look at the capital investment behind the profit. It needs more rigorous analysis to determine if they are gouging. 

 

 

 

 

 

 

 

 

 

 

 

 


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  Reply # 2117507 31-Oct-2018 18:18
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MikeB4:

 

@Fred99 The A$800-A$900 billion figure is for the ANZ Group

 

 

The figure I gave (~NZ$100b) was for the ANZ Group.

 

$900b sure isn't their market capitalisation or "assets".  No Aussie bank is close to the "trillionaire club".

 

I suspect that's probably the either size of their "loan book" - or someone mistakenly added an extra zero.

 

(Edit to say it's not their "loan book" - that total is about 1/4 of the sum stated above).

 

The quality of their loan book will be exposed in due course.  The Aus housing market is in a spot of bother.


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  Reply # 2117513 31-Oct-2018 18:39
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Fred99:

 

MikeB4:

 

@Fred99 The A$800-A$900 billion figure is for the ANZ Group

 

 

The figure I gave (~NZ$100b) was for the ANZ Group.

 

$900b sure isn't their market capitalisation or "assets".  No Aussie bank is close to the "trillionaire club".

 

I suspect that's probably the either size of their "loan book" - or someone mistakenly added an extra zero.

 

(Edit to say it's not their "loan book" - that total is about 1/4 of the sum stated above).

 

The quality of their loan book will be exposed in due course.  The Aus housing market is in a spot of bother.

 

 

Group assets are AUD942bn.  Group equity is AUD59.4bn.   Cash profit of $5.8bn.  ROE of c10%.  

 

NZ External assets are NZD126bn.  External liabilities are $114bn.  NZ equity is $12bn.  NZ Cash profit of $1.6bn.  


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  Reply # 2117516 31-Oct-2018 18:59
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@Fredd99 As at the 2017 financial return the ANZ Group assets were at A$897,326,000,000.




Mike
Retired IT Manager. 
The views stated in my posts are my personal views and not that of any other organisation.

 

 Mac user, Windows curser, Chrome OS desired.

 

The great divide is the lies from both sides.

 

 


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  Reply # 2117518 31-Oct-2018 19:06
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MikeB4: @Fredd99 As at the 2017 financial return the ANZ Group assets were at A$897,326,000,000.

 

 

 

See above - that's not net assets (less liabilities) which is a fraction of that.

 

If you "own" a million dollar house but owe $900k, you shouldn't claim you've got a $1m asset.


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  Reply # 2117520 31-Oct-2018 19:09
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Fred99:

MikeB4: @Fredd99 As at the 2017 financial return the ANZ Group assets were at A$897,326,000,000.


 


See above - that's not net assets (less liabilities) which is a fraction of that.


If you "own" a million dollar house but owe $900k, you shouldn't claim you've got a $1m asset.



My posts have never said net assets.




Mike
Retired IT Manager. 
The views stated in my posts are my personal views and not that of any other organisation.

 

 Mac user, Windows curser, Chrome OS desired.

 

The great divide is the lies from both sides.

 

 


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  Reply # 2117571 31-Oct-2018 20:22
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MikeB4:
Fred99:

 

MikeB4: @Fredd99 As at the 2017 financial return the ANZ Group assets were at A$897,326,000,000.

 

 

 

 

 

 

 

See above - that's not net assets (less liabilities) which is a fraction of that.

 

 

 

If you "own" a million dollar house but owe $900k, you shouldn't claim you've got a $1m asset.

 



My posts have never said net assets.

 

To be fair, I never realised that banks used a headline figure for "assets" in that stupid way. 


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