Market share slips for two banks

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Bank of New Zealand’s net profit surged 36.9% in the June quarter although its share of the mortgage market slipped a fraction, as did Westpac’s, their latest disclosure documents show.

Tuesday, August 29th 2006, 6:12AM

by Jenny Ruth

Westpac’s net profit fell 6% to $154 million for the quarter and profit for the nine months ended June was down 4.5% to $487 million, but the bank says this reflects its adoption of the new international financial reporting standards and the unwinding of structured finance transactions from last year. The underlying result for the nine months was actually up 12%, it says.

Westpac’s net interest income for the June quarter was up 12.7% to $292 million while its net operating expenses were up just 1.8% to $174 million.

Westpac’s mortgage book grew by $695 million, or 3%, to $23.65 billion in the June quarter, putting its market share at 19.36%, down from 19.38% at the end of March, using the Reserve Bank’s figures as a proxy for the market.

BNZ’s net profit for the June quarter jumped to $178 million from $130 million taking its profit increase for the nine months ended June to 17.6% to $448 million.

Its net interest income rose 11.7% to $276 million in the latest three months while its net operating expenses were up 4.7% to $179 million.

BNZ’s share of the mortgage book eased to 16.27% from 16.29% at the end of March with its book growing $582 million to $19.88 billion.

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