Major lender has released its latest half-year financial results
ANZ Bank New Zealand has reported a 4% decline in its first-half net profit, and part of the blame is on the slowing housing market.
ANZ NZ recorded a statutory net profit after taxation (NPAT) of $929 million for the six months to ending March 31. This steady half-year result reflected changes in the economy, ANZ NZ chief executive officer David Hisco.
“The housing market has levelled off, particularly in Auckland which has been the growth engine of that sector over the past 10 years,” Hisco said. “When you combine that with historically low interest rates, intense competition in home lending that has impacted bank net interest margins, and our fee reductions, underlying revenue growth has been muted.”
Read more: Property market: it’s 2018 all over again
ANZ NZ saw an 18% increase in cash profit to $1.1 billion due to one-off transactions, which included the sale of life insurance company OnePath Life NZ and a 25% share in Paymark. Other key highlights for the bank during the reporting period include an 8% increase in revenue, low levels of credit losses, a 7% rise in customer deposits and 4% increase in gross lending.
Last month, ANZ NZ launched Healthy Home Loan Package. It offers discounts off standard home loan rates for customers who choose to build or upgrade their homes to sustainable standards. This product supports ANZ’s $100 million pledge in interest-free loans for home insulation.
Hisco noted this financial year was the first without frontline incentives at ANZ New Zealand.
“Staff had embraced the cultural change away from sales targets while still ensuring the bank continued to be a high-performing organisation that met customer needs,” the bank added.
