Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Westpac NZ 1Q underlying earnings rise 9.7 percent

Westpac NZ 1Q underlying earnings rise 9.7 percent on fatter margins

By Paul McBeth

Feb. 20 (BusinessDesk) - Westpac Banking Corp's New Zealand unit lifted first-quarter earnings 9.7 percent as it widened its interest rate margins, although its bottom line was eroded by unrealised changes in the value of its financial instruments.

Profit after tax and before fair value movements climbed to $159 million in the three months ended Dec. 31 from $145 million a year earlier, according to the Westpac NZ general disclosure statement. That came from an 11 percent increase in net interest income to $382 million, where the bank managed to lift revenue and cut costs, at the same time as its loan book shrank and its deposits grew.

Westpac NZ homes loans were a touch lower at $35.98 billion as at Dec. 31 from $35.99 billion three months earlier, and net loans slipped to $59.19 billion from $59.42 billion at the end of September.

Term deposits rose to $23.77 billion from $23.07 billion over the same period, and total deposits were up to $45.55 billion from $43.39 billion.

The New Zealand business was the fastest growing unit in the Australian group last year when it lifted annual earnings 22 percent, grabbing market share and squeezing interest rate margins.

When unrealised writedowns in the value of its cash flow hedges and available for sale securities are included, Westpac NZ's net profit sank 35 percent to $149 million in the quarter, compared to unrealised gains a year earlier.

Shares in the Australian parent rose 1.8 percent to $37.30 on the NZX today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news