BNZ lifts half-year cash earnings 11%

Thursday 5th May 2011

Bank of New Zealand lifted its half year cash earnings 11% from a year earlier to $283 million, while the increase from the preceding six months was 5.2%.

Net interest earnings for the six months to March 31 were up 7.6% from the year before to $640 million, although only $2 million up from the September half year.

BNZ chief executive Andrew Thorburn said the result was built on good revenue and deposit growth, prudent cost management, and the bank's ability to bring innovative new products and services to the local market.

Retail deposits were up 9.7% from a year earlier, and 5.6% from the preceding half year, to $30.4 billion. Market share was up to 18.1% from 17.5% a year earlier.

The rise in customer deposits, along with diversifying and lengthening the bank's wholesale term funding profile with its pioneering issuance of covered bonds had strengthened the fundamentals of the bank, Thorburn said today.

Lending growth remained modest due to the subdued housing market and as many businesses remained focused on deleveraging rather than expansion.

NZPA

Comments from our readers

No comments yet