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Westpac's profit plummets

Westpac New Zealand’s net profit plummeted 84% in the June quarter as charges for bad loans continued to escalate and its mortgage lending growth slowed after a surge in the March quarter.

Sunday, August 30th 2009, 9:51PM 1 Comment

by Jenny Ruth

The latest general disclosure statement for the Australian bank's New Zealand subsidiary shows net profit for the three months ended June was just $26 million compared with $163 million in the June quarter last year. That brought net profit for the nine months ended June to $186 million compared with $462 million in the same nine months a year earlier.

The quarterly profit fall largely reflected a further $199 million in charges against profit for bad loans, bringing the total for the nine months ended June to $515 million compared with just $97 million in the same nine months a year earlier.

Net interest income fell 9.3% to $321 million in the June quarter but was up 7% at $1.02 billion for the nine months ended June.

Most of Westpac's burgeoning bad debts are from its corporate lending - mortgages gone bad accounted for just $20 million of the June quarter charges and $70 million for the nine months ended June.

Westpac's mortgage book totalled $27.02 billion at June 30, up $136 million from March 31. Using Reserve Bank figures as a proxy for the market, Westpac's new mortgage lending accounted for only 7.7% of the increase in lending on mortgages by registered banks in the June quarter.

That meant its market share slipped from 17.09% to just below 17%.

Its mortgage lending in the March quarter grew $365 million after adding just $60 million in the December quarter.

Westpac had a further $5.18 billion in undrawn mortgages at June 30.

Westpac's mortgages with loan-to-value ratios (LVRs) above 80% continued to decline to 26.9% of its mortgage book at June 30 from 27.4% at March 31 and 28.2% at December 31.

 

« BNZ coy on whether it will return to brokersANZ bad loan charges soar; underlying profit rises »

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Comments from our readers

On 31 August 2009 at 1:01 pm Wes said:
Has Westpact counted the $10ms, the permenant loan to the Gas Station Boss?
Commenting is closed

 

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.94 - - -
AIA - Go Home Loans 8.49 6.35 5.79 5.79
ANZ 8.39 ▼6.79 ▼6.29 ▼6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼6.19 ▼5.69 ▼5.69
ASB Bank 8.39 6.35 5.79 5.79
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.90 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - ▼6.19 5.79 5.79
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 8.44 - - -
BNZ - Rapid Repay 8.44 - - -
BNZ - Std 8.44 6.45 5.89 5.79
BNZ - TotalMoney 8.44 - - -
CFML 321 Loans 6.70 - - -
CFML Home Loans 6.95 - - -
CFML Prime Loans 8.75 - - -
CFML Standard Loans 9.70 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.15 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 8.15 6.35 5.79 5.69
Co-operative Bank - Standard 8.15 6.85 6.29 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼6.60 ▼6.10 -
First Credit Union Standard 8.50 ▼7.20 ▼6.70 -
Heartland Bank - Online 7.99 6.69 6.35 6.15
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC ▼7.49 ▼6.15 ▼5.69 ▼5.69
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 8.25 7.19 6.69 6.59
Kiwibank - Offset 8.25 - - -
Kiwibank Special - 6.29 5.79 5.79
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.75 ▼6.69 ▼6.19 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.49 ▼7.05 ▼6.39 ▼6.39
SBS Bank Special - ▼6.45 ▼5.79 ▼5.79
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.94 ▼5.45 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
TSB Bank 9.19 ▼7.09 ▼6.59 ▼6.59
TSB Special 8.39 ▼6.29 ▼5.79 ▼5.79
Unity 8.64 ▼6.29 ▼5.79 -
Unity First Home Buyer special - 6.20 - -
Wairarapa Building Society 8.50 6.65 5.99 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 8.44 6.53 6.10 5.79

Last updated: 4 October 2024 9:35am

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