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

 


BNZ first-half earnings rise 3.4 percent

BNZ first-half earnings rise 3.4 percent as charges on bad debts decline, business lending grows

By Paul McBeth

May 8 (BusinessDesk) - Bank of New Zealand, the local unit of National Australia Bank, lifted first-half cash earnings 3.4 percent as it faced smaller charges on bad debt, while business lending underpinned a small gain in interest income.

BNZ’s cash earnings rose to $400 million in the six months ended March 31 from $387 million a year earlier, Australian parent NAB said in a statement. Impairment charges dropped 27 percent to $41 million, bolstering gains from a 1.4 percent increase in underlying profit to $594 million. The bank shrank expenses 1.3 percent in the half, and reduced staff numbers 3.1 percent to 4,719 full-time equivalents.

Statutory net profit, which includes movements in the value of financial instruments and incorporates wholesale operations reported in NAB’s Australian banking unit, rose to $393 million from $298 million.

The lender lifted net operating income 1.3 percent to $994 million, led by increased business lending volumes, which offset muted home loan borrowing after Reserve Bank-imposed restrictions on low-equity mortgages stifled demand.

“Good growth in business lending, tight management of costs and lower loan losses were the main contributors,” NAB said in its commentary. “Asset quality indicators improved over the period.”

The New Zealand unit contributed about 12 percent to Melbourne-based NAB’s group cash earnings of A$3.15 billion in the half, up from A$2.9 billion a year earlier. Australia’s third-biggest mortgage lender increased first-half operating income 2.6 percent to A$9.49 billion, even as net interest margins shrank 9 basis points to 1.94 percent.

BNZ increased gross loans 5.2 percent to $62.5 billion as at March 31 from a year earlier. It lost market share in housing lending, with 15.8 percent from 16 percent six months earlier, citing increased competition. The lender’s share of agribusiness lending edged up to 22.2 percent while business lending was 22.2 percent. Net interest margins shrank 6 basis points to 2.34 percent.

The bank had customer deposits of $41.7 billion as at March 31 from $37.1 billion a year earlier, claiming 19 percent of market share for retail deposits.

NAB declared an interim dividend of 99 Australian cents per share, up from 93 cents a year earlier.

The ASX-listed shares fell 0.8 percent to A$33.84 yesterday, and have decreased 2.8 percent this year.

(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