ANZ New Zealand, the country's biggest lender, reported a 25 per cent fall in first-quarter profit as the value of the bank's hedging derivatives return to more normal levels, and as interest margins softened.
Net profit dropped to $300 million in the three months ended December 31, from $400 million
a year earlier, according to ANZ New Zealand's general disclosure statement. Net interest income fell 2.5 percent to $651 million, and other operating revenue more than halved to $93 million.
The Australian parent's cash profit rose 6.2 per cent to A$1.53 billion from a year earlier.
"This reflects adjustments the whole sector has experienced with FX and basis hedge valuations due to volatility in Europe, followed by the return to more normal levels as the situation in Europe has improved over the past year," a spokesman says in an emailed statement.
"Margins have also fallen from their 2012 peak due to a range of market factors, including the move from floating to fixed mortgages."
