Slight decline amid growth
BNZ has announced a statutory net profit of $762 million for the six months ending March 31, marking a decrease of 5.3% compared to the previous year.
Despite the dip, the bank has experienced growth in both lending and deposits.
However, an 11.1% increase in operating expenses, which totaled an additional $64 million, was noted as BNZ invested in enhancing its digital capabilities and staff resources.
BNZ CEO Dan Huggins (pictured above) described the results as “resilient” given the subdued economic environment.
“High interest rates and cost-of-living pressures continue to impact business and household finances," Huggins said.
He said the bank was committed to supporting its customers during these challenging times, emphasising proactive engagement with those who may need additional support.
BNZ revenue and banking operations
The bank reported that revenue for the first six months was broadly flat at $1,770 million, while the net interest margin saw a decline of eight basis points year-over-year.
This shift was attributed to intense competition within the banking sector and changes in customer behavior, such as an increased preference for term deposits due to higher interest rates.
Despite these conditions, BNZ has managed to maintain momentum, with notable increases in both home and business lending.
An unaudited summary of the financial results for the six-month period ending 31 March 2024 is provided below:
Innovations and customer focus
Underlining its focus on innovation, BNZ is actively integrating advanced technology to streamline operations and enhance customer experience.
“We are always looking for new ways to integrate the latest technology into the way we work and how our customers bank to enhance their experience and make banking simpler and easier,” Huggins said.
The bank has been a leader in developing open banking APIs, significantly benefiting customers with secure budgeting tools and alternative payment options. This strategic emphasis on digital transformation is aimed at making banking more accessible and convenient for its customers.
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