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BNZ steady despite challenges

Bank of New Zealand held on to its market share in the third quarter despite intense competition, and continued reining in poor quality assets amid weakness in the economy.
BNZ's parent, National Australia Bank, posted a 22% rise in cash earnings for the

NZPA
Tue, 10 Aug 2010
Bank of New Zealand held on to its market share in the third quarter despite intense competition, and continued reining in poor quality assets amid weakness in the economy.

BNZ's parent, National Australia Bank, posted a 22% rise in cash earnings for the three months ended June 30 but also suffered from intense competition across the Tasman.

NAB did not release detailed results for its New Zealand busines, but said BNZ's banking revenue rose during the quarter.

However, the poor outlook for the New Zealand economy resulted in relatively low demand for business and consumer credit.

BNZ's ratio of 90-plus days past due and impaired assets to gross loans and acceptances of 1.83% in June was steady compared with the previous quarter.

That compared with a group ratio of 1.91%, up from 1.86%, largely due to Australian business banking and NAB's UK banking operation.

BNZ's impaired assets have stabilised after increasing last year.

BNZ maintained market share in the quarter amid intense competition for customer deposits, with housing and business lending market share also stable. The bank increased its share of credit cards and agribusiness lending in the third quarter.

The bank accounts for about 17% of the New Zealand retail deposit market.

 

NZPA
Tue, 10 Aug 2010
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BNZ steady despite challenges
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