Westpac makes increased profit
Westpac NZ has improved its statutory profit after tax by 12% in the year to September.
Monday, November 7th 2022, 11:40AM
by Eric Frykberg
It reached $1.05 billion, up from $931 million a year ago.
Westpac's result followed a trend established by other big banks, such as ANZ, which broke the $2 billion mark, and ASB, which made $1.4 billion.
Rising interest rates and bigger loans have generally been credited for these higher numbers.
On a cash basis, Westpac's earnings fell 2% to $1.04 billion.
By including extraordinary items, such as the sale of Fidelity Life, Westpac's cash earnings rose 15% to $1.17 billion.
The company's net interest margin remained the same at 2%.
Chief executive Catherine McGrath said Westpac NZ had good momentum.
“We’ve sought to turn more Kiwis into customers through great service and competitive offers,” she said.
“This has translated into good growth in mortgage and business lending market share in the past six months.”
McGrath said despite the market volatility and a worsening global economic outlook, the fundamentals of the economy remained strong relative to other countries.
“Commodity prices are holding firm, exporters are being assisted by the subdued New Zealand dollar, and hospitality businesses will be pleased tourists are beginning to return.”
She added inflation remained a concern, but the rate of increase had peaked, according to her economists.
The New Zealand result was about a quarter of the result for Westpac Group, which is headquartered in Australia.
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