Westpac first-half cash earnings up 24% as margins improve 3 May 2012
- MARKET CLOSE: NZ shares fall; Fletcher, Xero drop Business
- Metlifecare sees annual earnings growth of up to 18% Business
- Government reviews the law of trusts News
- NZ dollar gains ahead of RBNZ statement Business
- Environmentalists seek to delay seabed mining application Business
- Solid Energy names Glencore’s Dan Clifford as CEO Business
- Govt seeks feedback on single ID for companies Business
- Postie Plus expects narrower annual loss Business
- NZ spending on credit, debit cards rises in February Business
- UPDATE Chorus shares slip after ‘pragmatic’ deal with CFH Business
Westpac Banking Corp’s New Zealand cash earnings rose 24 percent in the first half, reflecting improved margins and growth in lending and deposits in what it called a subdued local economy.
Cash earnings from New Zealand rose to $333 million in the six months ended March 31, from $269 million a year earlier, the Sydney-based lender said in a statement. Cash earnings for the parent company rose a more modest 1 percent to A$3.2 billion.
Westpac, Australia’s second-largest bank, said it had “modest” balance sheet growth in New Zealand in the first half, with lending up 4 percent and deposits up 6 percent. “Improved margins, strong wealth and insurance cross-sell and lower impairment charges contributed to the strong result,” it said.
The outlook for the remainder of the 2012 year is similar to its home market of Australia, where growth “remains uneven and activity remains soft in those sectors that rely on consumer demand, non-commodity exports and tourism.”
In New Zealand, growth has been even more modest, with global uncertainty impacting exports,” the bank said. “Confidence and activity are showing some signs of improvement as the rebuild of Christchurch gathers momentum, although the pace of improvement is likely to be slow.”
Westpac had 20 percent of New Zealand’s consumer lending market in the first half, unchanged from a year earlier, while its share of deposits edged up 1 percentage point to 21 percent. Its share of business lending slipped to 17 percent from 18 percent, it said today.
Net profit at the parent dropped 25 percent to A$2.97 billion, meeting analyst estimates. In the first half of last year it recognised a tax gain from the acquisition of St George Bank. The bank’s effective tax rate was 30.7 percent compared to 5.6 percent in the first half of 2011.
Shares of Westpac traded at $22.69 and have gained 14 percent this year. The stock is rated a ‘hold’ based on the consensus of 20 analysts in a Reuters survey.
The parent company’s net interest margin was 2.17 percent, down 4 basis points from a year earlier. Its Tier 1 capital rose 28 basis points to 9.81 percent.
10 Mar 2014 News
Prime Minister John Key has welcomed Solomon Islands Prime Minister Gordon Darcy Lilo who arrived in New Zealand today. “New... more
7 Mar 2014 News
A leading health organisation devoted to improving the health of Pasifika peoples has been selected to establish a Whanau Ora ... more
10 Mar 2014 Business News
Article - BusinessDesk Offshore iron ore mining worth $150M a year to NZ industry, miner claims By Pattrick Smellie March 10 ... more
10 Mar 2014 Review
All photos by Adam Trigg, courtesy of Lazarus Theatre Company London-based New Zealander Gavin Harrington-Odedra’s dark and... more
19 Feb 2014 Property
Housing Minister Dr Nick Smith today announced the start of a trial Warrant of Fitness scheme on Housing New Zealand... more
14 Feb 2014 Property
Feb. 14 (BusinessDesk) – New Zealand property sales fell 4.3 percent in January from a year earlier while the median price... more
27 Feb 2014 Migration
Article - BusinessDesk NZ net migration climbs to decade-high in January with more arrivals, fewer departures Feb. 27 ... more
4 Mar 2014 NZ Tourism
Transport Minister Gerry Brownlee has announced a staged 20 per cent decrease in the airline passenger security charges for domestic... more
10 Mar 2014 Rugby
2014 is already on track to be a landmark year on the field with Women's Rugby World Cup 2014 set to showcase the strength of the... more
10 Mar 2014 Football
FIFA’s iconic U-20 World Cup Trophy will travel through the South in May Dunedin (Monday, 10 March 2014) - Some of the most... more
7 Mar 2014 Column
Genesis share offer coming soon In the next few weeks, New Zealanders will have the opportunity to invest in a minority stake... more
6 Mar 2014 Opinion
The Cabinet manual not only forbids actual conflicts of interest when Ministers are performing public duties from which they or... more
20 Feb 2014 People
Feb. 20 (BusinessDesk) – The oil and gas industry has lost its chief lobbyist, David Robinson, who is leaving to become the... more
13 Feb 2014 People
Mediaworks Nicole Jones has been with MediaWorks TV for 13 years, most recentl... more
25 Feb 2014 Recruitment
Tertiary Education, Skills and Employment Minister Steven Joyce today released the free Occupation Outlook 2014 mobile app that... more