Westpac first-half cash earnings up 24% as margins improve 3 May 2012
- MARKET CLOSE: NZ energy stocks rally on Shane Jones effect Business
- NZ dollar gains as RBNZ lifts rates, sees faster growth Business
- Deloitte says Ruataniwha assumptions "reasonable" Business
- UPDATE:Southern Cross Forest lures foreign, local interest Business
- Southern Cross Forest receiver to close mill, exit Australia Business
- Brownlee takes hard-hitting rebuild report on the chin Business
- CORRECT: Chorus faces up to $10 mln earnings hit in 2014 Business
- FMA joins probe into interest rate swap sales to farmers Business
- Chorus faces up to $10 mln earnings hit in 2014 Business
- Abano mulls rebel shareholder request for meeting 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.
24 Apr 2014 News
One hundred special passes from the Gallipoli ballot will be allocated to children of Gallipoli veterans and youth... more
24 Apr 2014 Business News
April 24 (BusinessDesk) – An in-depth survey of senior leaders in the Christchurch rebuild indicates growing impatience and... more
24 Apr 2014 Business News
Southern Cross Forest receiver to close sawmill, wind up Australian business April 24 (BusinessDesk) - The receiver for... more
24 Apr 2014 ANZAC
Each year on 25 April, Australians and New Zealanders gather to remember the servicemen and women who have served their nation in... more
24 Apr 2014 Entertainment
Watch New Video for tUnE-yArDs’ ‘Water Fountain’ Nikki Nack - the new... more
7 Apr 2014 Property
April 7 (BusinessDesk) – New Zealand property values increased at the slowest annual pace in six months in March as lower... more
23 Apr 2014 Migration
April 23 (BusinessDesk) – New Zealand migration rose to an 11-year high in March, the second-highest gain on record, as fewer... more
28 Mar 2014 Migration
Citizens of Croatia aged between 18 and 30 will soon be eligible to apply for a New Zealand Working Holiday Visa, giving them the... more
23 Apr 2014 NZ Tourism
With 9,424 extra arrivals for the 12 months to the end of March, Germany has overtaken Japan to become New Zealand’s fifth... more
22 Apr 2014 Sport
The New Zealand Open team departs today to commence their World Cup campaign in Europe. Their first assault will be on the ICF Canoe... more
23 Apr 2014 Opinion
Shane Jones has left Parliament in the manner to which we have become accustomed, with self interest coming in first and second, and... more
23 Apr 2014 Appointments
Prime Minister John Key today announced the appointment of Cheryl Gwyn as Inspector-General of Intelligence and Security. The... more
17 Apr 2014 Appointments
April 17 (BusinessDesk) – Bank of New Zealand, the local unit of Australia’s third-biggest mortgage lender, named the... more
15 Apr 2014 Recruitment
The average annual wage is expected to increase by $7,500 to around $62,200 a year by 2018 if New Zealand achieves its ... more