But bank still well positioned to support customers, CEO says
Westpac New Zealand has reported a net profit of $963 million for the 12 months ended September 30, reflecting a 7% decline when excluding notable items, such as the one-time sale of Westpac Life in 2022, which did not recur.
Below are key financial data for the 12 months ended September 30, when compared to the same period last year:
- Net profit of $963m, down 18% (down 7% excluding notable items)
- Pre-provision profit of $1,479m, down 5% (up 4% excluding notable items)
- Net operating income of $2,774m, up 2% (up 7% excluding notable items)
- Operating expenses of $1,295m, up 12% (up 11% excluding notable items)
- Net impairment charge of $135m, down from $27m in the previous period
- Net interest margin 2.11%, up 11 basis points excluding notable items
- Home lending up 3% to $65.8 billion, business lending up 2% to $32.8bn, deposits up 2% to $79.8bn
Supporting customers
Westpac NZ CEO Catherine McGrath (pictured above) said the bank has made significant investments in supporting customers during challenging periods and strengthening its core operations, positioning it for a positive momentum for the next 12 months.
“Throughout the year we’ve stepped up to help New Zealanders through a range of immediate challenges and set them up for the longer term,” McGrath said. “Following this year’s severe weather events, we provided $3.9m in direct support to customers and to the community and iwi groups who were providing relief.”
With severe weather and climate-related impacts continuing to be a key concern for customers and stakeholders, McGrath said that Westpac has led the way to help Kiwis take action on these issues.
“In the past year we relaunched our Greater Choices sustainable home loan product – which includes New Zealand’s first interest-free EV loan – as well as launching New Zealand’s first ever whole-of-farm Sustainable Farm Loan and a new Sustainable Business Loan,” she said.
In response to the increasing impact of fraud and scams on New Zealanders, Westpac has partnered with cybersecurity company Biocatch, to help detect unusual customer behaviour that may indicate a scam.
“For example, if a customer is tricked into divulging their account login details, the new technology will help us identify and block attempts by cyber criminals to take over their account,” McGrath said.
She said the bank has also helped more New Zealanders achieve their homeownership dreams.
“With housing affordability still a hurdle, we helped 5,565 Kiwis into their first home – a 7% increase on the previous year – with a range of innovative products and solutions, such as helping bridge the gap between renters and owners with our support of shared equity and leasehold models,” McGrath said.
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