Sharechat Logo

Westpac reports 68% higher profit in NZ

Wednesday 4th May 2011

Text too small?

Westpac has increased its first-half cash earnings in New Zealand by 68% from a year ago, saying modest loan growth exceeded system growth.

The Australian-owned bank reported a NZ$210 million cash profit in the six months to March 31, 2011 for its New Zealand business, up from $125 million in the same period a year ago. This was after a $40 million impact from the earthquakes in Christchurch.

The New Zealand business had net interest income of A$486 million in the half year, down from A$492 million last year.

"The New Zealand economy has experienced a more subdued recovery than Australia and the Christchurch earthquakes have added a further degree of caution to an already soft economy," the bank said.

But the number of business loans under stress and the value of business loans in workout had declined.

The amount of 90-day deliquencies was higher in mortgages but had declined in consumer lending.

The bank said the quality of its mortgage portfolio remained high but mortgage delinquencies in New Zealand were higher than in Australia. Net mortgage write-offs improved by 1.2 basis points to 11 basis points.

The bank said a survey of its business customers in Christchurch showed that only 2% would be permanently affected by the earthquakes.

The bank's result included an explanation of ongoing changes to the bank's structure in New Zealand at the behest of the Reserve Bank of New Zealand.

The bank has already moved from being a branch to a dual registration operating model and implementation of further changes agreed in 2009 are still being worked through.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto