Westpac first-half cash earnings up 24% as margins improve 3 May 2012
- Investors Displeased by Central Banks Business
- Steel & Tube shares recover from 15-year low Business
- China Construction provides $140M cash infusion for NZ unit Business
- Restaurant Brands to kickoff home delivery of KFC Business
- Grant Samuel rolled out again to back Silver Fern Farms deal Business
- Stephen Copulos becomes 2nd largest shareholder in ARB Business
- Godfrey Hirst granted leave for narrow appeal Business
- Dip in June milk collection not as big as previously thought Business
- NZ staff turnover rising as balance tips Business
- NZ dollar little changed after RBNZ signals rate cuts 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.
23 Jul 2016 News
The Nation On The Nation: Lisa Owen interviews John Tamihere and David Seymour Youtube clips from the show are available
18 Jul 2016 Business News
Article - BusinessDesk Monday 18 July 2016 05:16 PM NZ caught in global backlash against Chinese steel imports July 18 (BusinessDesk)... more
13 Jul 2016 Business News
Article - BusinessDesk Wednesday 13 July 2016 03:10 PM Regulator, shareholder lobby welcome customer obligation for financial... more
18 Jul 2016 Lifestyle
The Outlook for Someday Young New Zealanders Making Films For Good What does sustainability mean to you? Since 2007 The Outlook for... more
21 Jul 2016 Property
Article - BusinessDesk Thursday 21 July 2016 04:55 PM UDATE: All five leading retail banks require 40% deposit from property ... more
30 Mar 2016 Migration
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more
12 Jul 2016 Travel & Tourism
Article - BusinessDesk NZ guest nights fell in May, snapping 25 consecutive monthly gains July 12 (BusinessDesk) - New Zealand guest... more
22 Jul 2016 Sport
Shearing Sports New Zealand NZ shearers in Wales July 21, 2016 World champion shearer Rowland Smith has become the fifth New... more
21 Jul 2016 Netball
Netball New Zealand Wellington A Black wins Netball NZ U17 Champs titleMedia ReleaseThursday 21 July, 2016The capital has, for the... more
7 Jul 2016 Opinion
Column - Gordon Campbell Gordon Campbell on Tony Blair and the Chilcot Report | werewolf more
14 Jun 2016 Opinion
Column - Gordon Campbell Gordon Campbell on our paltry refugee response and a brazen US rewrite of the TPP First published at... more
13 Jul 2016 Appointments
New Zealand Government Hon Christopher FinlaysonAttorney-General 13 July 2016 New Supreme Court and Court of Appeal ... more
7 Jul 2016 Recruitment
Article - BusinessDesk Fletcher chases 100 ex-pat Brits as construction sector faces capacity constraints July 7 (BusinessDesk) -... more