Subj : BNZ posts 'resilient result' - a half-year net profit of $762m
To   : All
From : News
Date : Thu May 02 2024 12:47 pm

Bank of New Zealand has announced a statutory net profit of $762m for the six
months to March 31 2024, a decrease of $43m or 5.3% compared to last year.

The results, announced today, reflect continued growth in Bank of New Zealand
(BNZ) lending and deposits and an increase in operating expenses.

Chief executive Dan Huggins said it was a "resilient result" in a subdued
economic environment.

"High interest rates and cost of living pressures continue to impact business
and household finances.

"While easing inflation is encouraging, it is expected to remain outside of
the Reserve Bank's target band until the end of year. Economic conditions are
likely to remain challenging until there is a material reduction in interest
rates."

He said the bank was in a strong position to supporting customers, which
remained its "top priority".

"Our teams continue to proactively contact customers who we have identified
as potentially needing additional support. For customers feeling under
pressure, our message is get in touch."

Revenue for the first six months was broadly flat at $1.77b while Net
Interest Margin dropped by eight basis points on the prior year.

This reflected strong competition across the banking sector and a change in
deposit mix as customers shifted their funds to term deposits to take
advantage of higher interest rates, the bank noted.

Huggins said BNZ has maintained momentum despite challenging operating
conditions.

"Our team is focused on serving our customers brilliantly every day and
supporting their ambitions, whether that's investing in their business or
buying their first, or next, home."

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