BNZ makes $221m in a busy half year

The Bank of New Zealand reported a net after tax profit of $221 million for the half year to March 31 yesterday - a 26 per cent jump on the $175 million it made during the same period a year ago.

BNZ, a subsidiary of the National Australia Bank, said all its market segments - including housing, agribusiness and business banking - had grown.

"There has been a strong performance in both lending and deposits despite the subdued economy," BNZ managing director Peter Thodey said.

"Over the past six months, there has been good growth in wholesale activities including lending, foreign exchange and treasury."

The New Zealand result followed the release by parent NAB of a $A2.025 ($NZ2.51) billion first half net profit, up from $A1.573 billion a year earlier.

BNZ emerged as a star performer in NAB's overseas operations, contributing $A136 million to the group result, a 36 per cent increase on the same period a year ago.

NAB chief executive Frank Cicutto said overseas earnings had contributed 41 per cent of the group's net profit.

In New Zealand, BNZ's net interest income rose to $364 million from $307 million, and non-interest income was $250 million, up from $232 million.

But operating expenses rose to $310 million from $294 million.

Mr Thodey linked this rise to an investment programme in branch refurbishment and upgrading of the bank's automatic teller machines.

This included the introduction of new "smart ATMs" which enabled customers to pay rates, order movie tickets and use personal programming for regular requests .

Mr Thodey said the bank would focus on lending growth, margin management and ongoing cost control.

Total assets at March 31 were $37.686 billion, up from $35.303 billion at the end of the financial year to September 30, last year.

- NZPA