BNZ records 17 per cent rise in profit

12.00pm

The Bank of New Zealand posted a 17.3 per cent rise in profit to $516 million, excluding one-off gains, for the year ended September 30.

Total annual profit for the BNZ, owned by the National Australia Bank, was $582 million, including a $56 million gain on the sale of BNZ Investments and Insurance.

BNZ managing director Peter Thodey said strong growth in core lending and deposit volumes lifted net interest income by 11 per cent. Retail deposits rose 15 per cent, while house lending was up 8 per cent.

Interest margins increased to 2.43 per cent from 2.28 per cent, while income from fees remained relatively flat.

The New Zealand economy was likely to slow during the next 12 months with offshore demand likely to weaken in response to an uncertain global environment, he said.

"However there will be a good underpinning to New Zealand growth from continuing strong inward migration, low interest rates, a cyclically strong housing market and business investment to meet capacity constraints."

In January the BNZ sold its subsidiaries BNZ Investment Management Limited, BNZ Life Insurance Limited and BNZ Nominees Limited to another member of the National Australia Bank Limited Group as part of an internal restructure.

- NZPA