Are the big four banks trying to downplay their profitability?

Westpac chief executive Catherine McGrath. Source: Westpac

New Zealand's banks are having to withstand what appears to be unprecedented political pressure with an inquiry by parliament's finance and expenditure committee (FEC) following the Commerce Commission's inquiry.

When I returned to NZ in 1994 after a seven-year stint in Australia, I was struck by the relatively benign attitudes among the general public towards banks compared with the much more antagonistic views in Australia.

Of course, there are always flare-ups in bank-bashing now and again, particularly when banks report their profits.

And former New Labour leader Jim Anderton parlayed his antipathy towards the profitability of the big four Australian-owned banks into the creation of Kiwibank.

Some politicians might not like seeing bank profits going to Australia – our big four banks are owned by Australia's big four and account for about 88% of our banking system.