NZ banks profits up 45% for June quarter
(25 October 2012 – New Zealand) For the three months ending June, New Zealand’s major banks made a net profit of NZ$914 million (A$719 million), up a huge 45 percent on the previous quarter, according to a KPMG report.
The survey included the results of eight banks: ANZ Banking Group, Bank of New Zealand (BNZ), ASB, Kiwibank, Southland Building Society, The Co-operative Bank, TSB Bank, and Westpac.
The profit turnaround was largely from a recovery in their investments, which took a big hit in the three months to the end of March, causing the banks' net profit to fall 45 percent.
Bad debts from the Canterbury earthquake were lower than expected with the ration of impaired asset expense to average gross loans falling 31 percent in the quarter.
KPMG warned the ongoing European debt crisis could ultimately affect New Zealand banks' access to funding, and said there were concerns about the impact of the slowing Australian and Chinese economies.
The profit turnaround was largely from a recovery in their investments, which took a big hit in the three months to the end of March, causing the banks' net profit to fall 45 percent.
Bad debts from the Canterbury earthquake were lower than expected with the ration of impaired asset expense to average gross loans falling 31 percent in the quarter.
KPMG warned the ongoing European debt crisis could ultimately affect New Zealand banks' access to funding, and said there were concerns about the impact of the slowing Australian and Chinese economies.
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