1 May 2018

NZ arm of ANZ Bank's net profit makes strong first half profit

1:39 pm on 1 May 2018

The New Zealand arm of the ANZ Bank has made a strong first-half profit, boosted by growth in home lending and deposits.

Sign for ANZ Bank

Photo: RNZ / Claire Eastham-Farrelly

The bank's net profit rose 11 percent to $964 million in the six months to March over the year earlier, reflecting strength in the housing market and the wider economy.

Revenue rose 3 percent to $2.11 billion, including a 2 percent rise in interest income and 4 percent increase in other income.

The bank's bad debts were $70m, which is three times more than the six months earlier and 75 percent up on last year.

Customer deposits rose 5 percent and while gross lending rose 3 percent.

The bank said net interest margins increased slightly in the first half, due to stabilising funding costs and the repricing of home loans.

Expenses rose 3 percent, reflecting increased investment in digital technology.

ANZ New Zealand chief executive David Hisco said the investment has improved its operations and back office processes, giving customers more online services and lower fees.

"We have shared this success with our customers, eliminating fees on ATM transactions and reducing fees on other banking products, while strengthening our competitiveness and value for money."

ANZ's Australian parent reported a 14 percent rise in first half net profit to $A3.32b, while revenue rose 6 percent to $A10.18b.

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