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Last Article Uploaded: Tuesday, November 30th, 7:17PM

Mortgages

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Westpac reports higher earnings

Westpac reports a profit of more than $1 billion and says lending growth was up 10% in the 12 months to September 30.

Monday, November 1st 2021, 11:28AM 1 Comment

by Eric Frykberg

Westpac NZ has revealed cash earnings of $1.01 billion in its 2021 full year result til the end of September.

That was an increase of $364 million or 56% compared with FY20.

It was primarily driven by a turnaround in impairment charges. Core earnings rose 9%. 

Acting chief executive Simon Power said while Covid-19 was causing significant strain, economic activity in the year leading up to the latest outbreak had been very strong.

“Looking to the horizon, we’re optimistic increasing vaccination rates will reduce the impact of the virus on New Zealanders’ health and the economy,” he said.

Westpac NZ’s financial results were helped by changes in the level of economic concern from the pandemic. 

“Last year we increased our lending provisions to $657 million to reflect the economic outlook from expected Covid-19 impacts,” Power said. 

“The economy has performed better than expected and, as such, our lending provision levels have reduced to $525 million, representing 0.6% of our total lending portfolio.”

The company also reported a 9% lift in core earnings on the prior comparative period, arising from growth in lending and deposit volumes and a 3 basis points increase in net interest margins to 2.00%. 

This was partially offset by increased spending on risk and regulatory compliance activities.

Power added Westpac NZ’s balance sheet was in good shape, and the bank was well placed to support households, businesses and the agri sector.

He added digital banking continued to increase in popularity, with 76% of customers now using Westpac online banking.

Mortgages have grown 10% and customer deposits have grown 7% for the year ending 30 September 2021.

Funds under KiwiSaver management increased by 14% year-on-year, to $9.1 billion as at 30 September 2021.

Tags: Westpac

« Advisers write nearly half of all ANZ's loansNew Zealanders have one very large egg in their wealth basket »

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Comments from our readers

On 1 November 2021 at 1:21 pm Andy the adviser said:
Yes, it's amazing the cost reduction you can achieve by reducing customer service.

I wonder if the bank realises just how much slack mortgage advisers are taking up now? Clients regularly come to me for services that SHOULD be done at a branch.

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.65 4.35 4.69
ANZ ▲4.79 4.25 4.95 5.35
ANZ Blueprint to Build ▲2.03 - - -
ANZ Special - 3.65 4.35 4.75
ASB Back My Build 2.04 - - -
ASB Bank 4.45 3.65 4.35 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone 3.74 3.54 3.89 4.09
BNZ - Classic - 3.65 4.35 4.69
BNZ - Mortgage One 5.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Rapid Repay ▲4.95 - - -
BNZ - Std, FlyBuys ▲4.95 4.25 4.95 5.29
BNZ - TotalMoney ▲4.95 - - -
CFML Loans 5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 3.59 4.09 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 5.25 4.00 4.60 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 4.15 3.29 3.85 4.19
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank ▲4.25 ▲4.54 ▲5.20 ▲5.54
Kiwibank - Offset ▲4.25 - - -
Kiwibank Special ▲4.25 ▲3.69 ▲4.35 ▲4.69
Liberty 4.84 - - -
Nelson Building Society 4.95 ▲4.29 ▲4.85 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 3.54 3.89 4.09
SBS Bank 4.79 3.65 4.19 4.25
SBS Bank Special - 3.15 3.69 3.75
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 3.29 - -
The Co-operative Bank - Owner Occ ▲4.75 3.49 4.15 4.49
The Co-operative Bank - Standard ▲4.75 3.99 4.65 4.99
TSB Bank 5.34 4.09 4.74 4.99
TSB Special 4.54 3.29 3.94 4.19
Unity 5.65 4.15 4.60 -
Wairarapa Building Society 4.99 3.55 3.89 -
Lender Flt 1yr 2yr 3yr
Westpac ▲5.09 4.25 4.95 5.29
Westpac - Offset ▲5.09 - - -
Westpac Special - 3.65 4.35 4.69
Median 4.77 3.65 4.35 4.69

Last updated: 30 November 2021 11:15am

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