Westpac NZ reported a $477 million net profit for the six months to March, up 11 per cent from the same period a year ago. Photo / NZME
Westpac NZ reported a $477 million net profit for the six months to March, up 11 per cent from the same period a year ago. Photo / NZME
Westpac NZ reported a $477 million net profit for the six months to March, up 11 per cent from the previous, cyclone-affected, first half a year ago.
The bank said the prior corresponding period included an overlay for the financial impacts of severe weather following last February’s Cyclone Gabrielle, which had since been removed.
The bank’s pre-provision profit was $688m, down 8 per cent while net operating income came to $1.38 billion, up 1 per cent.
Operating expenses were $695m, up 11 per cent.
Net impairment charges were $23m, down from $154m in the previous period.
The bank’s net interest margin - the profit the bank makes on the money it takes in and then lends out - came to 2.09 per cent, down 2 basis points on the same year-ago figure.
Westpac NZ chief executive Catherine McGrath said the bank had invested over the period to support customers with cost of living challenges in a tough environment and strengthen its business for the future.
“We’re continuing to step up to support customers through a range of immediate challenges, as well as set them up for the longer term and improve their banking experience,” McGrath said.
“Despite the recession, we’re backing customers’ growth aspirations.”
The bank supported first home buyers to purchase 3101 homes in the past six months – a 14 per cent increase on the prior corresponding period.
“We’ve lifted home lending by 3 per cent and we’ve lifted business lending by 1 per cent as we continue to support businesses and the economy to grow.
“We’re heading into the second half of the year with good momentum and are well positioned to support further growth as the economy recovers.”
Westpac NZ chief executive Catherine McGrath.
McGrath said she was optimistic the economy would start improving by the end of the year, but in the meantime many households and businesses were struggling with high interest rates and costs.
The bank had focused on “early and proactive outreach”, contacting more than 51,000 home loan customers who were due to re-fix at higher interest rates in the past six months, as well as more than 1800 customers the bank identified as at most risk of financial stress.
“We know things are tough for businesses as well, especially in the retail and hospitality sector,” she said.
“Overall, we have fewer customers suffering hardship than we’d expected, and most remain well-placed to manage ongoing cost pressures.”
In the six months, home lending was up 3 per cent to $67.4b and business lending was up 1 per cent to $32.7b.
