BNZ chief executive Dan Huggins says the economy is at a turning point, though the outlook is uncertain. Photo: RNZ
The Bank of New Zealand's first half net profit rose 4.3 percent with improved margins, though underlying profit was down on weaker revenue and higher costs.
The Australian owned bank's bottom line was improved by a drop in bad debts and impairments.
Key numbers for the six months ended March compared with a year ago:
- Net profit $795m vs $762m
- Revenue $1.747b vs $1.77b
- Underlying profit $1.075b vs $1.129b
- Impairment credit $28m vs -$71m
- Net interest margin 2.4 pct vs 2.37 pct
- Loans $108.5b vs $104.2b
- Loans $87b vs $81.8b
"Overall, this is a solid result in the current economic environment," BNZ chief executive Dan Huggins said.
"It supports our view that despite the current uncertainty driven by global trade and tariff tensions, New Zealand's economic fundamentals have improved.
"Looking beyond the current global volatility, we have confidence in the New Zealand economy and have delivered an impairment write back to reflect this."
He said the economy was at a turning point, though the outlook was uncertain.
BNZ chief executive Dan Huggins. Photo: Supplied
"As New Zealand's largest business bank, we understand that businesses will be at the forefront of
our economic recovery."
He said the bank was looking for new and innovative ways to support investment in growth.
"Lower interest rates and strong conditions in the primary sector have helped support improvements in the New Zealand economy.
"However, trade tensions have created significant volatility and heightened uncertainty in global markets."
Huggins said the bank was watching global developments and remained optimistic about New Zealand's long-term outlook.
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