(24 August 2012 – New Zealand) Bank of New Zealand (BNZ) increased its profit by more than a third even with mortgage lending growth slowing.The bank’s latest disclosure statements show that in the nine months to 30 June, profit increased 37 percent to NZ$528 million (A$409 million).
In the last quarter alone BNZ made a NZ$176 million profit, up 34 percent, even while the number of new home loans added to its books decreased.
New lending in the tightly contested mortgage market was NZ$156 million, down from NZ$179 million in the March quarter.
In the nine months to June, the bank’s loan book had grown by a total of NZ$845 million.
BNZ’s strong return has also been bolstered by a reduction in bad debt, with impairment losses down 63 percent to NZ$42 million.
If the bank’s momentum continues through the final quarter to September, BNZ will be on track to match or beat last year’s annual NZ$671 million return.
BNZ’s disclosure follows shortly after ASB and Kiwibank posted record-breaking full-year profits and ANZ National’s nine month disclosure also lined it up for a record return.