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

 


Westpac NZ first-half earnings rise 17% as impairments fall

Westpac’s NZ first-half earnings rise 17% on declining impairment charges

By Paul McBeth

May 5 (BusinessDesk) - Westpac Banking Corp’s New Zealand unit lifted first-half cash earnings 17 percent as it took fewer charges on impaired loans and kept a lid on operating expenses.

New Zealand cash earnings rose to $432 million in the six months ended March 31 from $368 million a year earlier, according to the Australian parent’s results. Impairment charges plunged 94 percent to $4 million with a reduction in stressed assets and fewer mortgage delinquencies beyond 90 days. Operating income increased 1 percent to $1.02 billion, while expenses shrank 2 percent to $422 million.

“Intense competition and a customer preference for fixed-rate mortgages has seen margins compress, contributing to 1 percent growth in revenue on the same period last year,” the bank said. “A further improvement in both business and consumer asset quality contributed to much lower impairment charges.”

The local Westpac unit generated about 11 percent of earnings for Australia’s second-biggest mortgage lender. Westpac today lifted first-half cash earnings 7 percent to A$3.77 billion, while its net interest margin shrank 8 basis points to 2.11 percent. Net operating income rose 7 percent to A$9.79 billion.

The bank’s New Zealand unit increased net loans 6 percent to $63.2 billion from a year earlier, with $38.6 billion of mortgages and $22.8 billion of business lending. Westpac said high loan-to-value ratio mortgage lending, which faces Reserve Bank-imposed restrictions, accounted for 7 percent of new loan flows in the half.

Term deposits increased 1 percent to $24.5 billion from a year earlier, with other deposits up 15 percent to $23.9 billion.

Westpac will pay a fully-franked interim dividend of 90 Australian cents per share, up 5 percent from a year earlier.

The dual-listed shares rose 0.8 percent to $37.50 on the NZX. Its ASX-listed shares closed on Friday at A$34.87, and have gained 7.7 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news