BNZ adds to banking profits

BNZ is the third bank to post a billion dollar-plus profit in the past fortnight.

It says its statutory net profit for the year to September has increased by $92 million, or 7%, to $1.4 billion.

Chief executive Dan Huggins attributes this increase to a growth in housing and business lending.

Huggins cited a $2.5 billion rise in business lending for the boom, along with increased lending to farmers.

But he warned it would not all be easy for the bank's customers.

“While New Zealand’s economy has shown resilience, and the majority of our customers are in good shape, with interest rate increases and the rising cost of living, more New Zealanders are going to find it tough,” he said.

Broken down in more detail, the BNZ results were robust across the board.

Along with the increased statutory profit, loans and advances rose 4.9%, customer deposits increased 4.3% and KiwiSaver funds under management rose 6%.

On the negative side, operating expenses rose slightly, by 1.5%. And credit impairments rose considerably, from a write-back of $37 million to $89 million of costs.

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