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Mortgages

Mortgage Rates Daily Commentary
Monday 9 December 2024  Add your comment
Huge pile of mortgage money on short terms as borrowers wait for interest rate drops; SBS and Kiwibank rates change

While mortgage lending grows most borrowers are shying away from long term fixed rates as the Reserve Bank indicates it has more OCR cutting to do. [READ ON]

 

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Tax credit boosts BNZ profits despite underlying profit drop

Bank of New Zealand's December quarter net profit rose, thanks to a tax credit as a result of its settlement with the Inland Revenue Department over its structured finance transactions.

Thursday, February 25th 2010, 2:57PM 1 Comment

by Jenny Ruth

The profit rise was despite a sharp fall in net interest income while its share of the mortgage market slipped.

BNZ's net profit for the three months ended December rose 4.2% to $271 million, boosted by an $83 million tax credit. On December 23, BNZ agreed to pay 80% of the tax owed as a result of the High Court ruling last August against it on its structured finance transactions.

BNZ had provided $661 million against profit for the year ended September against its tax bill.

The bank's interest income plunged 34.4% in the three months but its interest expense fell an even greater 40.9%, leaving net interest income down 19.2% at $311 million.

BNZ's charges against profit for bad loans rose to $43 million compared with $35 million in the same three months a year earlier. Only $5 million of the latest charges related to mortgage lending.

The bank's mortgage book grew $129 million to $25.64 billion in the December quarter, accounting for only 8.3% of new mortgage lending by registered banks, based on Reserve Bank figures.

That meant BNZ's share of mortgages held by registered banks slipped to 15.81% at December 31 from 15.88% at September 30. BNZ had a further $2.08 billion in off-balance sheet mortgages at December 31, mortgages approved but not drawn down, compared with $2.19 billion at September 30.

The proportion of mortgages with loan-to-value-ratios (LVRs) above 80% rose slightly to 10.4% from 10.3% three months earlier.

« Kiwibank's profit dives 40% but mortgage book surges in Dec QtrWespac's mortgage book gallops but profit falls »

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Comments from our readers

On 26 February 2010 at 4:27 pm brendan said:
The banks were saying they were not overcharging on loans, that there we passing on the savings. But the truth is in the numbers, interest expense fell 40.9%, and interest income only dropped 34.4%.
Commenting is closed

 

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard ▼7.69 6.69 6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special 7.39 5.69 ▼5.59 ▼5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.84 5.75 5.69

Last updated: 9 December 2024 10:05am

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