The BNZ has reported an improved profit for the year ending
September, the second New Zealand bank this week to show a
growing balance sheet.
The BNZ cash profit was $788 million, up 6.3% on the previous
corresponding period. The operating profit, before allowing
for doubtful debts, was up 5% at $1.17 billion. The reported
after-tax profit was $695 million, up 17%.
Earlier this week, ANZ New Zealand reported a cash profit of
$1.44 billion, up 12% on the previous period, and a statutory
profit of $1.37 billion.
BNZ income for the period was up 4.5% at $1.96 billion.
Operating expenses rose by $28 million, or 3.7%, because of
increased investments in technology, improving customer
service and BNZ's campaign to help customers to be good with
money, the bank said in a statement.
Chief executive Andrew Thorburn said the bank's drive for
customer deposits had achieved ''excellent growth'' over the
year, the average volume increasing by $4 billion, or 11.6%.
The bank's market share of deposits had also grown to 19.3%.
''We are pleased with this result, which reflects strong
performance across our target sectors in an environment of
intense competition,'' Mr Thorburn said.
BNZ owner NAB reported a cash profit of $A5.94 billion
($NZ6.82 billion), in line with expectations, but the
earnings quality was not as good as expected, Morningstar
analyst David Ellis said.
Earnings were boosted by a sharp fall in bad debts, down
$A700 million or 26%. Moderate loan growth (up 4%) and lower
net interest margins (down 0.7% to 2.02%) restricted income
growth, he said.
Higher expenses included restructuring costs for the
Australian and New Zealand banking operations stood out,
personal banking earnings in Australia up 18% and up 13% in
NAB's largest business unit, business banking, which made up
42% of group earnings, struggled with low demand for credit
but still managed a 3% increase in profits because of lower
bad debts, Mr Ellis said.