RBNZ Governor Comments on Bank Profit Data
4 December 2012
Reserve Bank Governor Graeme Wheeler today commented on bank profitability data that was released recently to the Green Party.
The Bank also released the data for the period 20092011, which shows returns on equity and assets of New Zealand banks appear to be in line with other advanced economies (excluding euro area countries).
Mr Wheeler said the Bank commissioned the data before the Finance and Expenditure Committee hearing into the Bank's Financial Stability Report on 7 November. However, the analysis was not complete at the time of the hearing, at which he was asked about bank profits.
"My response to the Select Committee represented my understanding of the information available at that time. Our analysis was completed after the hearing and we released it to the Green Party in response to their request, which followed the hearing. We are now releasing it publicly."
Mr Wheeler said different measurement practices around the world, including or excluding tax and extraordinary items, meant that international comparisons of bank profit figures are not straightforward. …