Increased housing lending fuels strong earnings for BNZ

Strong results support commitment to deliver for customers, says bank

By Krizzel Canlas

04 May 2018

Bank of New Zealand (BNZ) banking group has announced a statutory net profit of $490 million for the six months ended in March, with operating revenue up 11.1% driven by strong business and housing lending growth and improved net margins.

Its cash earning for NZ banking recorded an 8.6% increases over the same period.

“BNZ’s strong revenue growth has been underpinned by a significant growth in customer deposits and savings,” says BNZ chief executive officer Angie Mentis. “These results mean BNZ is well placed to respond to an unprecedented change in the way customers are using digital technology.”

Mentis said BNZ is “accelerating an ambitious transformation strategy,” and that over 92% transactions and 49% of sales are now digital.

With customer deposits totaling $58 billion, BNZ said it is better placed than ever to support business growth across the economy.

“We’ve continued to support New Zealanders to get into their first or next home or property, with an increase of $2 billion in housing lending over the same period,” says Mentis.