Banks profit up, economy doing well

[donna]

Reserve Bank believes inflation is transitory - back to 2% next year.

ANZ's profit was up 44% on the previous year. The other banks must have faired pretty well too.

NZ Economy has done well despite no tourism. Farming has been our saviour and now New Zealand feeds 10 x its population. Farming exports are expected to hit a record $49.1 billion next year and further growth out to 2025.

The only way to derail our healthy farming exports economy is if the Greens get to sabotage it with extensive regulation measures. This could happen if they get a proper seat at the table - next election.

There's a lot to fret about but at least it's not all bad news and there's no need to panic. I've heard some first homeowners say they think they shoud sell so they can get their equity out before house prices plummet. I guess many will follow through and end up back where they started - not on the property ladder.

cheers,

Donna

[donna]

Shouldn't be a surprise that the major banks are pushing ahead DTI's maybe just ahead of RBNZ mandating it.

On Friday, Steve Goodey on FB mentioned that all major banks have done it however in the media so far only BNZ is confirmed as using a DTI of 6 for 'new' lending that comes via a broker.


cheers,

Donna

[Sanya]

[...]

NZ Economy has done well despite no tourism.

Perhaps, but listening to Andrew Bayly, Nationals shadow treasurers recent parliamentary speech he claimed New Zealand lost 9500 business last month.

The problem for small business is cashflow i.e. not enough of it or sufficient reserves to keep operating when income tanks.

Companies Office data compiled by Dot Loves Data showed 9524 business closures in August. In the previous two months, there had been almost 12,000 closures.

By comparison, in the three months between February and April, only 5241 businesses closed.

Dot Loves Data government director Justin Lester said the jump was significant but would not reflect the effects of the latest lockdown yet.

Source: https://www.stuff.co.nz/business/126...own-data-shows

[donna]

^^ Yeah, there were always going to be business and job casualties. Though it's worth noting too that in NZ anyone can set up a business entity and that it can be a business of one.


cheers,

Donna