Westpac New Zealand made $477 million in after-tax net profits, while pre-provision profit fell 8%, the bank has reported in its half-year financial results.
The net profit figures reflect the six months to the end of March and are up from the $428 million in the previous period — the six months to September 2023.
It reflected "higher impairment provisions in the prior period which included an overlay for the financial impacts of severe weather following Cyclone Gabrielle, which has since been removed," according to a spokesperson for the Australian bank.
"Net operating income was 1% higher than the prior corresponding period, but this was more than offset by increased expenses, due to continued investment in staff and technology and a range of inflationary pressures.
The bank's chief executive Catherine McGrath said a "sluggish economy, weakness among key trading partners such as China and a tense geopolitical environment are all contributing to uncertainty across the economy".
"The dominant narrative right now is that economic weakness and tight financial conditions are weighing heavily on households and businesses," she said.
"However, our economists see the current economic headwinds easing this year and a slow recovery taking hold, with subdued growth across the rest of this year and 2.4% GDP growth in 2025."
She added: "Despite the recession, we’re backing customers’ growth aspirations.
"We’ve supported first home buyers to purchase 3,101 homes in the last six months — a 14% increase on the prior corresponding period — and we have a wide range of options in the market to help them on that journey.
"We've lifted home lending by 3% and we’ve lifted business lending by 1% as we continue to support businesses and the economy to grow.
"We're heading into the second half of the year with good momentum and are well positioned to support further growth as the economy recovers."
Westpac reported these figures earlier today:
- Net profit of $477 million, up 11%
- Pre-provision profit of $688 million, down 8%
- Net operating income of $1,383 million, up 1%
- Operating expenses of $695 million, up 11%
- Net impairment charge of $23 million, versus $154 million in the previous period
- Net interest margin 2.09%, down 2 basis points
- Home lending up 3% to $67.4 billion
- Business lending up 1% to $32.7 billion
- Deposits down 1% to $78.8 billion.
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