BNZ posts 11 percent profit increase
(16 May 2011 – New Zealand) Bank of New Zealand (BNZ) reported cash earnings of NZ$283 million (A$210 million) for the six months to 31 March 2011.
The result is an increase of 11 percent, up NZ$28 million compared to the March 2010 half year report.
BNZ CEO Andrew Thorburn said it is an extremely sound result for the bank in a challenging economic environment.
"Overall this solid half year performance has been built on good revenue and deposit growth, prudent cost management and our ability to bring innovative new products and services to the local market."
The bank had focused on deposits, particularly the growth in retail deposits from NZ$27.7 billion to NZ$30.4 billion, an increase of 9.7 percent. Market share had also grown from 17.5 percent to 18.1 percent.
"Growing our share of customer deposits in a landscape of fierce competition is an excellent result. In conjunction with diversifying and lengthening our wholesale term funding profile with our pioneering issuance of Covered Bonds we’re extremely pleased to have further strengthened the fundamentals of the bank in such a subdued economy," Mr Thorburn said.
BNZ is well ahead of the Reserve Bank of New Zealand’s core funding ratio requirements and will continue to exceed the step up in the regulatory minimum on an ongoing basis. The ongoing rebalance towards customer deposits will also support the continuance of BNZ’s AA credit rating.
BNZ CEO Andrew Thorburn said it is an extremely sound result for the bank in a challenging economic environment.
"Overall this solid half year performance has been built on good revenue and deposit growth, prudent cost management and our ability to bring innovative new products and services to the local market."
The bank had focused on deposits, particularly the growth in retail deposits from NZ$27.7 billion to NZ$30.4 billion, an increase of 9.7 percent. Market share had also grown from 17.5 percent to 18.1 percent.
"Growing our share of customer deposits in a landscape of fierce competition is an excellent result. In conjunction with diversifying and lengthening our wholesale term funding profile with our pioneering issuance of Covered Bonds we’re extremely pleased to have further strengthened the fundamentals of the bank in such a subdued economy," Mr Thorburn said.
BNZ is well ahead of the Reserve Bank of New Zealand’s core funding ratio requirements and will continue to exceed the step up in the regulatory minimum on an ongoing basis. The ongoing rebalance towards customer deposits will also support the continuance of BNZ’s AA credit rating.
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