It remains optimistic about the year ahead
Bank of New Zealand (BNZ) has released its full-year results to September 30, 2020 – emphasising the significant impact of COVID-19 and the currently unstable environment on the business.
BNZ's statutory net profit dramatically dropped by 25% from $260 million to $762 million due to the impacts of the pandemic, the lower interest rate environment, and a reduction in the bank's capitalised software balances.
Meanwhile, credit impairment charges increased by 163% or $186 million, driven by a forward-looking economic adjustment due to deterioration in broader macro-economic factors as a result of the pandemic.
“It has been a challenging year, and I'm proud of how our people have responded. We're focused on supporting our customers and are optimistic about the future,” said BNZ chief executive officer Angela Mentis.
“We have seen New Zealanders quickly reshape how they work, shop, and live. They are doing things differently, seizing opportunities, and banking in different ways. We will continue to grow and adapt in this rapidly changing environment.”
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Despite the pandemic and the current environment, BNZ remains optimistic about the year ahead as it focuses on meeting increasing digital service demand – with over 1,500 customers transitioning to online banking per month and an increase in the number of older people becoming digitally active.
“This year’s events have shown the importance of being able to run your business digitally. We saw that for ourselves, as did our customers,” Mentis said.
“Breaking down barriers to digital banking access is important, and we're committed to offering a range of services and programmes like our Over 70s line and Scam Savvy Week that give New Zealanders support and guidance to get online and enjoy the benefits.”
“Our people have embraced flexibility, our online banking is fast and easy, and our bankers are serving our customers irrespective of where they are,” Mentis concluded.
