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New Zealand banks go from strength to strength despite global market uncertainties
Our analysis for the second half of the 2011 financial years (2H11) revealed core earnings of $2.8 billion (bn), up from $2.3bn from the previous six months (1H11). This result was driven by growth in both net interest income and other operating income, as banks successfully weathered an increase in bad debt expenses.
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Resilient result in challenging half year
New Zealand’s five major banks (ANZ National, ASB, Bank of New Zealand, Kiwibank and Westpac) reported core earnings of $2.3bn in the first half of their 2011 financial years (1H11), up from $2.2bn from the previous six months (2H10). This was driven by growth in net interest income and other operating income, offset by rising operating expenses.
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Banks return to normal, but not as we know it
The banks have produced solid results, in a difficult economic environment, for the second half of their 2010 financial years. But the composition of these results is not as we had previously known it and represents the ‘new normal’ for the New Zealand banking sector.
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Major banks start down the road to recovery
The banks have weathered recent turbulent times caused by the global financial crisis and our domestic recession. They have put the settling of the conduit tax disputes behind themselves to record respectable, if unspectacular, profits for the first six months of their respective 2010 financial years (1H10).
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