BNZ's full-year profits rise almost 17%

Bank of New Zealand has seen slight improvement on its quarter-share of the business lending market, from 25.8% to 26.5%.

The increase was revealed as the bank opened its books on its full-year result today.

Profits rose $88 million or 16.8% to $612 million for the year to September 30, as revenue grew $100 thousand to $1,775 million.

A $2.8 billion or almost 10% growth in retail deposits, to $31.1 billion, helped boost the result.

Overall market share lifted to 18.2% from 17.7%.

BNZ chief executive Andrew Thorburn said lending growth was still modest due to the subdued housing market and weak overall demand for business credit.

“While deleveraging is still a trend, we’re seeing real strength in some corporate balance sheets and well structured companies are taking advantage of sustained demand for New Zealand commodities.”

Impaired loans and resulting bad and doubtful debts charges had fallen $36 million to $151 milllion.

“While we’re seeing a local economy that’s struggling to gain growth momentum we remain optimistic about the long-term economic outlook with favourable stimulus to come from the eventual Christchurch rebuild, solid export volumes and continued global demand for our commodities,” said Mr Thorburn.

BNZ is part way through a $200 million project to refurbish its retail stores and BNZ Partners Business Centres.

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