BNZ profit rises 7% to $1.4 billion

The Bank of New Zealand has reported its full year result.

Strong business and home lending has helped drive BNZ’s profit up 7 per cent or $92 million to $1.4 billion for the year to September 30.

The bank’s total operating income rose 9.5 per cent to $3.131b with a strong rise in its net interest income which was up 14.8 per cent to $2.604b.

While its expenses rose 1.5 per cent to $1.076b.

Total loans and advances rose 4.9 per cent to $99.3b while its deposits and other borrowings only grew 0.3 per cent to $78.2b. The bank’s net interest margin was up 13 basis points to 2.15 per cent.

BNZ chief executive Dan Huggins said the bank was well placed to support its customers through continued economic uncertainty.

“While New Zealand’s economy has shown resilience, and the majority of our customers are in good shape, with interest rate increases and the rising cost of living more New Zealanders are going to find it tough.

“We’ve supported New Zealanders facing these sorts of challenges before. Our advice to customers is talk to us. The sooner you get in touch the more options we’ll have to find a way forward together,” Huggins said.

The bank’s business lending rose by 6 per cent to $2.5b.

Huggins said the bank continued to stand behind its business customers, supporting them to invest in and grow their operations, as New Zealand’s economy has proven to be more resilient than expected.

“Businesses have proven to be the economy’s shock absorber. Having more New Zealanders in stable employment has helped them better manage financial challenges like the rising cost of living.

“While there will be more challenges ahead, there will also be opportunities. We’re doing our part to help businesses, by providing them with the tools they need to better serve their customers and make doing business simpler and easier.”