Westpac first-half cash earnings up 24% as margins improve 3 May 2012
- Synlait Milk flags faster growth in 2014 Business
- NZ dollar falls after Fonterra holds farmgate price Business
- 2.15 million people sign up as KiwiSaver continues to grow News
- Chorus warns of more earnings pain from latest review Business
- Restaurant Brands third quarter sales rise 5.4% Business
- Fonterra units sink back to issue price as dividend slashed Business
- Fonterra slashes dividend forecast, holds milk price Business
- MRP to freeze energy price until April 2015 Business
- NZ dollar pares gains after Fonterra holds farmgate price Business
- MARKET CLOSE: NZ shares fall as Fonterra units cut to sell 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.
11 Dec 2013 News
New Zealand Government 2.15 million people sign up as KiwiSaver continues to grow Revenue Minister Todd McClay today released the... more
10 Dec 2013 State of the Market* - Opinion
The other day I read a headline that I remembered seeing many years earlier. It proclaimed that the major currencies of the world are... more
10 Dec 2013 Business News
Article - BusinessDesk FMA sees big gap between ‘big four’ auditors and the rest By Paul McBeth Dec. 10... more
10 Dec 2013 Lifestyle
Dunedin City Council Here’s Your Chance to be a Rock Star! Dunedin (Tuesday, 10 December 2013) – If you’re a... more
9 Dec 2013 Property
Auckland property values continue to surge ahead, up 15.2 per cent in the last year. QV has
10 Dec 2013 Migration
Doing Our Bit Costs, benefits, rugby and refugees Murdoch Stephens – Doing Our Bit (www.doingourbit.co.nz) Amongst all... more
10 Dec 2013 Travel & Tourism
Article - BusinessDesk Air New Zealand expects 1H pre-tax earnings of $166.8 mln, on target to exceed FY earnings By Tina... more
10 Dec 2013 Sport
Massey University Social media a boost for Olympic sports A Massey University researcher has found that social media is helping ... more
10 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on the latest TPP leaks, and our shabby treatment of asylum seekers by Gordon ... more
9 Dec 2013 People
In less than a year, Lorde has gone from a Year 12 student at Auckland's Takapuna Grammar to a global pop star. The Kiwi's... more
9 Dec 2013 Recruitment
Those in high paid jobs are seeing their wages rise faster than others because of a lack of competition partly due to people leaving... more