BNZ has announced a statutory net profit after tax of $1.49 billion for the full year ending 30 September. This marks a slight decrease of $7 million, or 0.5%, compared to the same period last year.
BNZ’s revenue fell by 3.7% compared to the previous year, whereas total lending grew by 4.6%, driven by a 6.4% rise in home lending and a 2.2% increase in business lending.
“BNZ has supported more than 11,500 customers into home ownership, with first home buyers accounting for 33% of all new home loans as they took advantage of relatively flat house prices and lower mortgage rates,” BNZ chief executive Dan Huggins said.
Huggins said the result “reflects the current economic environment as New Zealanders continue to navigate an economy that is taking longer than expected to recover.”
“Customers are making the most of the falling interest rate environment by paying their loans down faster, with more than 50% of customers’ home loan accounts projected to be ahead on their repayments by more than two years.”
According to Huggins, nearly half of home loan customers are currently benefiting from interest rates of 5% or lower.
BNZ has also seen deposits grow by $4.8 billion, or 5.8%, compared to the previous year, reaching a record total of $87 billion.
Huggins noted that economic recovery is progressing despite taking longer than initially expected.
“Interest rates have fallen significantly, and New Zealand’s primary export sector is experiencing buoyant conditions driven by high export prices, a lower NZ dollar, and solid production.”