ANZ New Zealand CEO Antonia Watson is closely monitoring the combined impact of rising inflation, interest rates, and fuel costs on the bank's customers, warning that the economic pressures could significantly affect borrowers in the coming months. While the country's largest bank has not yet recorded losses related to Middle East conflicts, Watson acknowledges that economic pain typically takes time to manifest in credit losses as households and businesses exhaust other options before defaulting on loan repayments.

The bank's customers have become accustomed to economic uncertainty, but Watson remains particularly concerned about how the triple burden of higher costs will affect vulnerable borrowers. Low-income earners, who are hardest hit by high inflation, are less likely to hold mortgages with ANZ, suggesting the bank's direct exposure may be limited in some segments. However, Watson has expressed wariness about geopolitical headwinds potentially curtailing economic momentum in the second half of ANZ's financial year, as the bank's profit has already shown signs of decline amid the challenging economic environment.