Sharechat Logo

BNZ 9-month profit edges up 1.8% on smaller bad debt charges

Tuesday 29th August 2017

Text too small?

Bank of New Zealand, the local unit of National Australia Bank, posted a 1.8 percent increase in net profit for the first nine months of the year as smaller charges on bad debt made up for largely flat income. 

Net profit rose to $692 million in the nine months ended June 30 from $680 million, the lender's quarterly disclosure statement shows. Impairment losses shrank to $42 million from $106 million a year earlier, making up for a dip in operating earnings as expenses rose 5.6 percent to $698 million and offset flat operating income of $1.7 billion. 

Net interest income slipped to $1.31 billion in the nine-month period from $1.32 billion a year earlier, while the bank's loan book expanded to $78.15 billion as at June 30 from $72.56 billion a year earlier. Of that, housing loans rose to $36.61 billion from $33.91 billion, and other term lending increased to $37.57 billion from $34.32 billion. 

Earlier this month NAB noted an improvement in gross loans to assets in the June quarter, "mainly reflecting improved conditions for New Zealand dairy customers", and $158 million of loans past 90 days due but not impaired plus a $545 million provision for bad debts amounted to 0.89 percent of gross loans, compared to 0.99 percent three months earlier. 

BNZ's June quarter disclosure statement said a recovery in farmgate returns for dairy farmer returned the majority of New Zealand farmers above breaking even but it was still "working closely with those customers for whom some level of financial pressure remains following the lower 2015 and 2016 pay-outs." 

BNZ's term deposits increased to $30.43 billion as at June 30 from $26.8 billion a year earlier, while total deposits and other borrowing increased to $59.9 billion from $56.32 billion. 

(BusinessDesk)



  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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report