BNZ profits up 17.8% to $490m in H12018

Sustained corporate and housing lending buoyed monthly revenues.

Bank of New Zealand net profit rose 17.8% YoY to $490m for the six months ending 31 March, according to a press release.

Total revenue also rose 8.1% to $1.19b amidst strong volume growth in home and business loans.

Net interest margin increased 9 basis points to 2.24% due to improved margins and lower funding costs. However, operating expenses increased 7.4% to $465m.

Also read: Scrutiny over Australian banks wrongdoing spill over to New Zealand

“We are accelerating an ambitious transformation strategy. Our sights are set on the changes that will make the biggest difference to our ability to consistently offer our customers a seamless banking experience,” said BNZ CEO Angie Mentis.

Customer deposits stand at $58b as growth in SME segment continues to grow after hitting $22b in value.