New Zealand Banking Perspectives

Solid results in tough times

August 2009

The New Zealand Banking Perspectives Publication analyses the reported results of New Zealand’s five major banks (Westpac, ASB, ANZ National, BNZ and Kiwibank), and builds on the Australian Major Banks Perspectives publication that was released in May this year. The report shows that New Zealand's banks are weathering the economic turmoil with solid half-year results. However, a quadrupling of bad debts has forced down profits by 22 percent over 18 months.

Given that New Zealand has been in a recession for a more than a year, the most recent results show our banks have performed credibly with a modest decline in combined statutory earnings compared to the previous six months. But the sustained impact of five quarters of negative economic growth is certainly taking its toll.

Therefore, it is unsurprising that results also show that New Zealand banks are lagging behind those in Australia, which have shown a more modest decline in underlying earnings.		    NZ Banking Perspective

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New  Zealand Banking Perspectives

Press Release: 

Bank profits slide 22% as bad debts quadruple