New Zealand major lenders have picked up the pace of lending for the June quarter, according to a new report.
The latest KPMG’s Financial Institution Performance Survey suggests 1.58% increase in loan to homebuyers and businesses totalling $412.2billion.
Leading the way is TSB with 13.61% year-to-year growth, followed by Heartland at 12.28% and SBS Bank at 8.89%. Quarterly analysis, meanwhile, shows Heartland (2.69%), TSB (2.66%) and BNZ (2.01%) as tops performers.
The quarterly analysis also highlights a net profit increase of 14.61% for New Zealand banks to $1.424b.
KPMG noted the increase in profit can be attributed to the leap in net interest income of $48million and non-interest income by $77m. These are also improved asset expense of $116m and operating expenses of $7m.
The group’s head of banking and finance John Kensington said, “The last two quarters have shown true volatility. It will be interesting to see how the next couple of quarter’s results behave as there are contradictory indicators, with, most notably, business confidence still down while other indicators are more positive.”