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Cash earnings up 24% at Westpac NZ

Cash earnings up 24% at Westpac NZ

(3 May 2012 – New Zealand) Westpac Banking Corporation’s (WBC) New Zealand's first half-year cash earnings jumped 24 percent with net interest margins up 6 basis points. The group announced that cash earnings had risen NZ$64 million (A$50 million) to NZ$333 million in the six month period and a rise in net interest margins of 6 basis points during the six months to March 31 to 2.43 percent had also been achieved.

Westpac’s expense to income ratio fell to 42.7 percent from 44.1 percent in the second-half of the previous financial year. The bank said impairments were down 9 percent - versus the second-half of the 2011 financial year - to NZ$98 million. Lending rose 4 percent and deposits increased 6 percent.

Gail Kelly, Westpac Group CEO, said the New Zealand business delivered a strong performance, benefiting from previous investment in the branch network.

'Balance sheet growth was modest with lending up 4 percent and deposits up 6 percent, reflecting the subdued economy. Improved margins, strong wealth and insurance cross sell and lower impairment charges contributed to the strong result,' said Mrs Kelly.
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