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BNZ delivers strong result through key initiatives

BNZ delivers strong result through key initiatives

(8 May 2015 – New Zealand) Key initiatives have delivered a strong performance for Bank of New Zealand (BNZ), which reported a statutory net profit of NZ$502 million (A$472 million) for the six months to March 2015.

“This result is an extremely pleasing one, reflecting the underlying growth momentum we are building, and is testament to the efforts of all of BNZ’s people over the past six months to deliver for our customers,” said BNZ chief executive Anthony Healy.

Cash earnings increased by NZ$33 million or 7.3 percent to NZ$483 million, driven by growth in lending volumes, good expense management and a strong Markets result.

BNZ said the increased revenue was partially offset by higher operating expenses and charges for bad and doubtful debts.

The net interest margin increased by seven basis points to 2.41 percent, due to lower funding costs, which were partially offset by a decline in asset margins from customers switching to lower margin fixed-interest rates.

Customer deposits increased by NZ$3.1 billion, or 7.4 percent year-on-year.

Average lending volumes grew by NZ$2.5 billion, or 4.0 percent and average housing volumes were up by NZ$1.4 billion or 4.7 percent and business lending by NZ$1.1 billion or 3.5 percent.

“Investing in our people, leveraging our digital capability and expanding our reach are core to our strategy of helping New Zealanders be good with money,” said Healy.

“And the investment we have made in our retail and partners’ networks over the past five years to create a unique point of difference in the market is really paying off.

“That financial success enables us to continue investing in and supporting areas of our economy linked directly to the wider prosperity of ‘New Zealand Inc.’ – the SME sector, agriculture, housing and investing to support Auckland’s growth,” he said.

Healy said he expects BNZ’s recent re‐entry into the mortgage broker market to boost the bank’s home loan performance, and to position the bank strongly in the high‐growth Auckland market.

“We know that 25 percent of customers choose to use a broker, so our decision made strategic and commercial sense.

“It extends our reach and will enhance BNZ’s capacity to help more New Zealanders to buy their own home.” Healy said.

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