The bank has also continued to support customers, CEO says
ANZ New Zealand, the country’s biggest bank, has delivered a cash net profit after tax (NPAT) of $1,107 million for the six months to March 31, up 1% on the six months to Sept. 30.
The bank’s statutory NPAT, which includes gains and losses from economic hedges, dropped 17% to $1,002m over the same period.
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Other key points: All comparisons are against the six months ended Sept. 30 |
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Antonia Watson, ANZ NZ CEO, said the result was a “good” one where all parts of the business performed well, and that prepares the bank for the uncertain economic environment ahead.
“While a rising interest rate environment contributed to the result, this was offset by intense competition in home lending, which we expect to remain a feature of the market for some time into the future,” Watson said.
“From talking to business customers across the country, confidence remains very subdued as high interest rates and escalating costs impact business profitability against a backdrop of weakening demand.
“Given the ongoing uncertain environment, we need to remain cautious, which is reflected in the increase in credit provisions.”
ANZ NZ said it recognised a credit impairment charge of $121 million, and total credit impairment provisions rose to $860 million, from $739 million.
Supporting customers
Watson said ANZ NZ has provided support to customers and communities who were impacted by the recent natural disasters that have devastated large parts of the country. Support included emergency access to more than $11 million of interest free funds and around $1.3 million of fees waived.
The ANZ NZ chief said the bank is “closely monitoring” how its customers are managing, particularly those borrowers who were rolling off lower fixed-rate loans.
“We have a team proactively contacting customers to make sure they’re aware of their options to manage repayments and provide support for those who need it,” Watson said.
“Fortunately, many of our customers took the opportunity to pay down debt while interest rates were low, and a third are ahead on their home loans by six months or more. Customers are also benefiting from term-deposit rates being around five times higher for popular terms than they were before rates began rising.”
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