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Old Mortgage News

Tax credit boosts BNZ profits despite underlying profit drop

Thursday 25th of February 2010

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.

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