ANZ grows home loan market share and profit

New Zealand's biggest bank has reported statutory net profit after tax of $1.096 billion in the six months to March on the back of increased home loan market share,

ANZ chief executive Antonia Watson called these “solid results”, stemming from strength in the housing market, notwithstanding recent headwinds.

“The business has successfully grown home loan market share and carefully navigated through significant regulatory change over the period,” Watson said, in an apparent reference to the much criticised CCCFA and tighter LVRs.

"Spring and summer are the busiest time for the housing market and, while property values have fallen 4.1% since the November peak, they are still a good deal higher than they were a year ago.

“Against this backdrop, ANZ NZ’s market share of home loans increased from 30.38% in September 2021 to 30.66% in March 2022.”

But she also warned of changing consumer sentiment.

“With rising inflation and interest rates, and increasing uncertainty globally, we’re starting to see New Zealanders tighten their belts and the current environment
remains a challenge for many small and medium-sized businesses.”

ANZ NZ was watching the situation carefully, she said, referencing COVID-19, international supply chain issues and heightened geopolitical tensions across the globe.

Watson said ANZ was weathering some of these problems, with credit impairment provisions being broadly flat, at $20 for the half.

And data showed more than a third of customers are ahead on their home loan by six months or more.

Business and institutional customers continued to manage well, though lending to this sector remained muted for the half year.