BNZ makes $1 billion as first home lending soars
BNZ has posted a profit of $1.02 billion for the financial year, boosted by a 6% increase in overall lending and 25% rise in first home loans.
Monday, November 11th 2019, 11:27AM
The big four lender, owned by National Australia Bank, recorded a net profit of $1.02 billion, a decrease of $7 million on the prior year.
Overall profits took a knock from one-off expenses but remained broadly flat compared to last year. In contrast, profits at NAB plummeted by 10.6% to A$5.5 billion last year, as the Australian group paid A$1.1 billion in customer compensation fees.
BNZ's underlying profits rose by 2.2% excluding exceptional items, and net interest income was up by nearly 6%. Margins were down to 2.25% due to record low interest rates, the bank said.
BNZ said overall bank loans rose by 6% over the past year, while deposits increased by 7%. The lender increased first home buyer lending by 25% over the past year, lending to 5,000 people, and provided 16,000 loans for small and medium sized businesses.
The bank has targeted growth in the SME sector in the coming year.
CEO Angie Mentis said: "BNZ wants to see New Zealand’s towns and communities flourish and is committed to backing local businesses. Last year, we made available $10 billion of lending over five years to small and medium enterprises outside of New Zealand’s main centres and we know it is being put to good use across the country.”
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