Today’s updated RBNZ Financial Strength Dashboard shows that New Zealand’s largest banks are feeling the pressure of what looks like a cooling economy.
Profits at the end of the first quarter are down, the Cooperative Bank reported a loss, provisions are up, net interest income is down.
This is not great, because banks need profits to meet the higher capital requirements.
On the other hand, expect less media coverage of outrageous profitability of our banks.
Kiwibank’s capital was unchanged, hopefully ending a multi-year downward trajectory.