BNZ makes $1 billion as first home lending soars
The big four lender, owned by National Australia Bank, recorded a net profit of $1.02 billion, a decrease of $7 million on the prior year.
Overall profits took a knock from one-off expenses but remained broadly flat compared to last year. In contrast, profits at NAB plummeted by 10.6% to A$5.5 billion last year, as the Australian group paid A$1.1 billion in customer compensation fees.
BNZ's underlying profits rose by 2.2% excluding exceptional items, and net interest income was up by nearly 6%. Margins were down to 2.25% due to record low interest rates, the bank said.
BNZ said overall bank loans rose by 6% over the past year, while deposits increased by 7%. The lender increased first home buyer lending by 25% over the past year, lending to 5,000 people, and provided 16,000 loans for small and medium sized businesses.
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