14 Mar 2012

Ratings agency predicts steady earnings for NZ banks

8:51 am on 14 March 2012

Ratings agency Standard Poor's says the earnings outlook for New Zealand's major banks is steady, despite weak credit growth and pressures on margins.

In a new report Standard Poor's says it expects banks to remain supported by a moderate economic recovery.

It says most banks have stable outlooks and that is unlikely to change this year.

However a weakening in the rating of their Australian parents could trigger a downward rating of the New Zealand subsidiaries.

The agency says it believes credit losses will remain relatively low by international standards and that New Zealand's economic recovery will last through 2012, supported by the global economy and commodity exports.