Jacinda Ardern has taken aim at banks in New Zealand for collecting billions in profits as the cost of living crisis deepens, saying they risked losing “social licence” to operate.
New Zealand’s 27 banking companies posted before-tax profits of NZ$9.7bn (US$5.6bn; £5bn) in the year to June, and are on track to pass a record-breaking $10bn next quarter. Those profits come as the population struggles with a cost of living crisis – food prices are up 8.3%, and overall inflation at a 13-year high of 7.2%, driving up mortgage rates, rents and household costs.
