Thursday 10th May 2012 |
Text too small? |
Bank of New Zealand, the local unit of National Australia Bank, reported a 36 percent jump in first half profit after widening its interest margin, lifting deposits and taking a lower charge for bad debts.
Cash earnings were$385 million in the six months ended March 31, from $283 million a year earlier, the lender said in a statement today. Parent National Australia posted a 6 percent gain in first-half cash earnings to A$2.8 billion, while net profit fell about 16 percent to A$2 billion, reflecting charges in its UK business.
Bank of New Zealand, the nation’s second-largest by total assets after ANZ National Bank, said earnings growth was achieved on “modest margin improvement, increased volumes and a lower charge for bad and doubtful debts.”
The net interest margin widened by 17 basis points to 2.41 percent, which it said reflected strong growth in demand for variable rate mortgages and a favourable product mix. Retail deposits climbed by 10.2 percent to $33.5 billion and the bank lifted its market share by 70 basis points to 18.7 percent.
BNZ’s charge for bad and doubtful debts fell 64 percent to $34 million, reflecting lower provisions on business loans, “strong” credit card collections and an overall improvement in credit quality “as the economic recovery continues.”
BNZ’s Tier One capital ratio was 9.59 percent. The parent’s earnings were dented by the continued poor performance of its UK banking business, where it is overhauling its operations and plans to eliminate 1,400 jobs.
Its charge for bad and doubtful debts rose by 36 percent, with most of that reflecting “the significant deterioration in asset quality.” Shares of National Australia last traded on the ASX at A$24.61 and have climbed 5.4 percent this year. The company is rated ‘outperform’ based on the consensus of 19 analyst recommendations compiled by Reuters.
BusinessDesk.co.nz
No comments yet
POT Financial Results for the year to 30 June 2025
MOVE FY25 Results for the year ended 30 June 2025
BPG - Completion of Retail Offer
Comvita releases results for the year ended 30 June 2025
August 29th Morning Report
Air New Zealand announces 2025 financial result
August 28th Morning Report
VSL - 2025 date of Annual Meeting of shareholders
WIN - Winton announces FY25 Annual Results
Meridian Energy Limited 2025 Full Year Financial Results