By Gareth Vaughan
Westpac NZ eked out a 2.3% rise in unaudited June quarter profit thanks to lower costs and reduced loan impairments.
The bank's latest General Disclosure Statement (GDS) shows profit after income tax for the three months to June 30 up $4 million to $178 million from $174 million in the same period of last year.
Meanwhile, in its third quarter trading update yesterday, BNZ's parent National Australia Bank (NAB) said NZ banking cash earnings increased over the June quarter with a lower bad and doubtful debt charge and stable asset quality metrics.
"Volume growth was strong but has been offset by increased competition and customer preference for lower margin fixed rate mortgage products," NAB said.
NAB said its unaudited June quarter cash earnings rose 7% to A$1.5 billion.
Meanwhile, Westpac NZ's June quarter net interest income was down $9 million, or 2.3%, to $386 million, but net operating income rose $1 million to $480 million.
Operating expenses were cut $3 million, or 1.5%, to $203 million, and impairment charges on loans dropped $3 million, or 10%, to $28 million.
During the June quarter the bank grew gross lending by $493 million, or about 0.81%, to $61.017 billion. This was slightly ahead of deposit growth, which was up $311 million, or about 0.70%, to $46.379 billion.
Interest.co.nz reported on Monday that, based on the loan-to-value ratio disclosure in the GDS, Westpac grew net residential mortgages by $518 million, or 1.4%, to $36.980 billion in the June quarter. Of the growth $515 million, or 99%, came from non-high LVR lending, which was up from 92% in the March quarter.
The percentage of Westpac's overall mortgage book at high LVRs, by value, dropped slightly to 23.24% from 23.56% at March 31.
Meanwhile, Westpac's individually impaired assets fell by $162 million, or 20%, during the June quarter to $633 million. And its assets at least 90-days past due dropped $19 million, or 12%, to $135 million.
Total assets were down $483 million to $69.177 billion, and total liabilities decreased $695 million to $62.824 billion.
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