Results are despite an ever changing banking environment, the bank says
Westpac New Zealand has released its financial result for the first half of 2019, and it described its performance as “solid.”
Among the key highlights for the firm include a 15% increase in cash earnings to $555 million (including the sale of Paymark) and a 6% rise in operating expenses to $480 million. For the six months ending March 31, Westpac NZ recorded $14 million in impairment expenses, down from $38 million and a net
interest margin 2.23%. Meanwhile, customer deposits and loans both grew 4% year-on-year.
According to Westpac NZ chief executive David McLean, the bank is continuing to transform its business to respond to the ever-changing environment.
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McLean noted the low-interest environment had benefitted borrowers, with first home buyers particularly active. However, Westpac said credit growth slowed across the industry in the last six months.
“We’ve responded by focusing our business on high quality deposits and lending, in the process helping more New Zealanders to save and own their own home,” McLean said. “In March, Westpac NZ became the first bank to launch a dedicated mortgage product which streamlines construction home loans for prefabricated builds.
“That’s important as prefabricated builds generally cost less and can be built faster helping with affordability and housing supply,” he explained.
Westpac NZ also mentioned its engagement with regulators, in relation to the recent Bank Conduct and Culture Review. The bank said it provided its response to the regulators at the end of March 2019.
“The low margin environment and evolving regulatory outlook will present challenges into the second half of the year, but we have confidence in the fundamentals of the economy, and our capability to execute in response to change,” McLean added.
