Sharechat Logo

Westpac NZ Q1 profit up 43%

Wednesday 29th February 2012

Text too small?

The New Zealand arm of Australian banking giant Westpac saw tax-paid profit jump 43 percent in the three months to Dec. 31 2011, compared with the same three months a year earlier.

Net profit after tax and impairments was $206 million for the quarter, compared with $144 million in the same quarter a year earlier.

While interest income flat-lined at $1 billion, compared to the same period in 2010, interest expenses of $631 million were significantly lower in the latest quarter than the $680 million recorded the December quarter of the previous financial year. That left net interest income of $369 million, compared with $347 million in the prior comparable period.

The figures were issued in the quarterly disclosure statements required by the banks, as a condition of holding banking licences in New Zealand.

Total non-interest income helped to the result, with increases in all areas other than gains on ineffective hedges, so that total income from these sources was $145 million, compared to $121 million, putting net operating income before tax and impairments at $514 million in the December 2011 quarter, compared with $468 million in the same period a year earlier.

Loan impairments were also down, at $21 million for the latest reported quarter, compared with $58 million in the December 2010 quarter and total impairments for the year to Sept. 30 2011 of $226 million.

At the end of the quarter, gross loans outstanding totalled $58.7 billion, of which $2 billion were recorded as “past due”. Of these loans, $1.4 billion were less than 30 days in arrears, and another $276 million was at least 90 days overdue.

Impaired home loans at the beginning of the December 2011 quarter totalled $195 million, and this figure fell to $179 million by the end of the quarter. Additions of $59 million and write-offs of $8 million were offset by $67 million of loans returning to “performing” status or repaid.

(BusinessDesk)

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar withstands poor manufacturing data
Bublitz to serve home detention following appeal
Former G8 boss takes over management of Evolve
Precinct boosts earnings, withholds $34m from Fletcher
Sky TV shares rise on US$40m RugbyPass acquisition
Precinct boosts earnings, withholds $34m from Fletcher
Sky TV shares rise on US$40m RugbyPass acquisition
NZ manufacturing activity shrinks for first time in seven years
Orr defends RBNZ rate cut, says monetary policy looks ahead, not behind
Michael Hill underlying earnings fall 14% as margins squeezed

IRG See IRG research reports