TSB hardest hit as bank profits slip

Banks are still turning good profits, but business is not as good as it was.

In his quarterly report, banking lecturer David Tripe, from Massey University's Centre for Banking Studies, said that the six major banks averaged a 1.21 per cent return on assets in the three months to March, down slightly from the previous quarter.

The study found ANZ, a subsidiary of the Australian bank of the same name, was the most profitable in the quarter with profits of 1.4 per cent.

The worst performer was the only New Zealand-owned player, New Plymouth-based TSB, at 0.8 per cent.

Mr Tripe said TSB's result had been dragged down by a big increase in personnel costs.

Profit for Australian-owned BNZ was just below 1.2 per cent, British-owned National Bank was about 1.3 per cent, and Australian-owned WestpacTrust came in at 1.1 per cent. Australian-owned ASB was just below the 1 per cent benchmark.

- NZPA