Bank posts $494m statutory profit as software adjustment and rising costs weigh on results
BNZ’s statutory net profit for the six months to 31 March 2026 fell to $494 million, a drop of $301 million or 37.9% from the prior year. The bank said the decline was largely due to a one‑off adjustment to capitalised software assets. Excluding this, cash earnings were $747 million, down 6%.
Operating income held steady at $1.76 billion, while expenses rose 4.3% to $701 million. Credit impairment provisioning increased by $20 million, bringing the total to $995 million, reflecting caution around the potential impacts of the Middle East conflict.
Lending and deposits rise
Even as profit declined, lending activity expanded. BNZ reported home lending up 6.6% and business lending up 2.2%, with total lending rising $5.1 billion to $113.6 billion. Customer deposits also grew 5.3% to $89.9 billion.
“The first half of the year saw many New Zealand businesses anticipating a steady return to economic growth. We saw both housing and business lending increase, as household and business confidence improved,” chief executive Dan Huggins (pictured) said in a media statement.
Sentiment shifts amid global pressures
Huggins noted that confidence has weakened in recent months.
“While it was pleasing to see a return to confidence in the New Zealand economy, the Middle East conflict has eroded that positive sentiment and our customers have once again had to adjust quickly,” he said.
The BNZ boss added that higher fuel prices have shifted sentiment “from growing confidence to one of caution.” This shift comes at a time when borrowers face mounting pressure, with mortgage rates set to rise while households already contend with higher living costs.
Customer focus drives BNZ’s lending strategy
BNZ said it remains in a solid position and committed to supporting customers.
“BNZ is in a solid position and is committed to supporting our customers. Whether they are looking to invest, grow or manage through periods of uncertainty, we have an experienced team and encourage customers to talk to us,” Huggins said.
The bank highlighted initiatives such as its Home Loan Switch and 24‑hour home lending promise as part of its customer support strategy.
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