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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news