BNZ today announced its half year results to 31 March 2026, reporting a statutory net profit of $494 million, down $301 million or 37.9% on the prior year.

This was primarily driven by a one-off reduction in BNZ’s capitalised software assets due to changes to its software capitalisation policy. Excluding this one-off adjustment, BNZ’s net profit was down $48 million to $747 million.

Revenue was broadly flat, up 0.7% to $1,760 million, while operating expenses excluding the one-off adjustment were up 4.3% to $701 million.

BNZ increased its credit impairment provisioning by $20 million year on year to a total of $995 million. This includes a forward-looking adjustment for the potential impacts of the Middle East conflict.

A reflection of the NZ economy pre-conflict

BNZ CEO Dan Huggins says this result is largely a reflection of the New Zealand economy prior to the Middle East conflict.

“The first half of the year saw many New Zealand businesses anticipating a steady return to economic growth. We saw both housing and business lending increase, as household and business confidence improved.”

BNZ’s home lending was up 6.6% and business lending up 2.2% on the prior period. Total lending was up $5.1 billion or 4.7% to $113.6 billion.

Total customer deposits increased by $4.5 billion or 5.3% to $89.9 billion. BNZ’s net interest margin was down 4 basis points as strong competition for customers continued.

“While it was pleasing to see a return to confidence in the New Zealand economy, the Middle East conflict has eroded that positive sentiment and our customers have once again had to adjust quickly,” says Huggins.

“New Zealanders have shown resilience in recent years, but the impact of higher fuel prices on households and businesses has seen a change in sentiment from growing confidence to one of caution.

“We continue to monitor the situation closely, but right now it is difficult to predict how the conflict in the Middle East and its impacts here will evolve, which means uncertainty is prevailing.

“BNZ is in a solid position and is committed to supporting our customers. Whether they are looking to invest, grow or manage through periods of uncertainty, we have an experienced team and encourage customers to talk to us,” says Huggins.

Supporting customers

“Since the start of the conflict, BNZ has proactively contacted thousands of customers to understand any impacts and discuss how the bank can best support them,” says Huggins.

“What most customers tell us is that while it is challenging, they are currently managing as they work hard to adapt to the uncertainty.

“Our business banking specialists are offering their expertise as business owners look to manage cashflow and working capital, optimise debt structuring and model business impacts including freight and fuel volatility.

“As always, our message to customers is get in touch. The sooner they do, the more options we may have available to help,” says Huggins.

Delivering innovative solutions

Despite the uncertainty, BNZ has continued to innovate for our customers, to grow our suite of market leading products and services.

“From solutions like BNZ’s Home Loan Switch, which is expected to save customers millions of dollars in estimated legal fees over the next two years and make switching banks easier; to our 24hr home lending promise, and Total Money offset accounts. Or our great deposit rates, competitive lending rates and surcharge free Payap payment options.

“This focus on simple and market leading banking solutions has helped BNZ retain its number one Consumer Net Promoter score (NPS) amongst the five largest banks and win Canstar’s 2026 Bank of the Year Home Loans award,” says Huggins.

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