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

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news