BNZ's parent, National Australia Bank (NAB), says its New Zealand banking revenue grew in the June quarter thanks to the impact of ongoing fee and interest rate increases, or "repricing for risk."
In its June, or third, quarter trading update NAB says that despite the continuation of intense competition for customer deposits, BNZ held its market share during the quarter.
"New Zealand banking revenue for the June quarter grew as the ongoing focus on repricing for risk continued to have a positive impact," NAB said.
"Housing and business lending market share also remained stable, while credit cards and agribusiness lending share increased."
NAB also said the BNZ's asset quality was stabilising with the ratio of 90 plus days past due and impaired assets to gross loans and acceptances (GLAs) at 1.83%, in line with the March 31 level.
However, the New Zealand economic outlook remained weak, resulting in "relatively" low demand for both business and consumer credit.
Meanwhile NAB said group June quarterly cash earnings came in at about A$1.1 billion, up from A$900 million in the same period last year. The bank said its net interest margin was stable but funding costs remained under pressure.
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