KEY POINTS:
The Bank of New Zealand has reported a 5.1 per cent rise in underlying half-year net profit to $288 million.
Managing director Cameron Clyne today said the past six months were categorised by intense competition, not only in housing, but across all sectors.
The six month result to the end of March was underpinned by solid volume growth and sound asset quality, he said.
While the net margin had declined 5 basis points compared to March 2006, it has improved 2 basis points since September.
As well as being 5.1 per cent ahead of the corresponding six months a year ago, today's underlying net profit was 15.2 per cent up on the six months to September.
BNZ, owned by National Australia Bank, said highlights of today's result included a 10.2 per cent increase in net interest income to $594 million, compared to a year earlier.
The cost-to-income ratio had improved by an underlying 1.2 per cent, while the level of impaired assets was at record lows.
Mr Clyne said overall market share trends were stable, and, as in previous years, BNZ was not out to win business at any cost.
"Our focus has always been on writing profitable business, and preserving asset quality," he said.
The outlook for economic and market conditions remained challenging, but BNZ was well positioned to meet those challenges.
BNZ's total operating income rose 16.7 per cent to $895m.
NAB, which also reported today, said its first-half cash profit rose 22.8 per cent to A$2.136 billion ($2.43 billion).
- NZPA
