Monday 18th February 2013 |
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Bank of New Zealand first-quarter profit sank 56 percent after the local unit of National Australia Bank took bigger impairment charges on its loan book and wrote down the value of financial instruments, even as it squeezed more from its interest rate margins.
Net profit fell to $126 million in the three months ended Dec. 31 from $289 million a year earlier, according to the lender's general disclosure statement. Net interest income rose 7.8 percent to $388 million, with the lender increasing net margins to 40.5 percent from 38.5 percent a year earlier.
The bottom line was hit by a $74 million loss on the fair value of its financial instruments, compared to a $139 million gain a year earlier, and a $36 million impairment charge on its credit exposures, up from a $3 million charge in 2011.
Earlier this month, NAB said the New Zealand banking unit's cash earnings were up on volume growth and higher fee income.
BNZ lifted its home loans to $28.49 billion as at Dec. 31 from $28.13 billion three months earlier, and net loans grew to $59.78 billion from $58.92 billion. The lender's term deposit slipped to $22.13 billion as at Dec. 31 from $22.36 billion at the end of September.
BusinessDesk.co.nz
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