(21 February 2013 – New Zealand) Impairment charges dropped Bank of New Zealand (BNZ)’s first-quarter profit by 56 percent.In the three months to 31 December, net profit fell to NZ$126 million (A$103 million) from NZ$289 million year-on-year.
Net interest income rose 7.8 percent to NZ$388 million, with BNZ increasing net margins to 40.5 percent from 38.5 percent a year earlier.
BNZ had earlier revealed its cash earnings rose on volume growth and higher fee income but declined to give its cash earnings figures, it also reported an improvement in lending volumes, reflecting gathering confidence in the economy.
BNZ said its bottom line took a NZ$74 million loss on the fair value of its financial instruments, compared to a NZ$139 million gain a year earlier.
The bank was also hit by a NZ$36 million impairment charge on its credit exposures, up from a NZ$3 million charge in 2011.