Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

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

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.