Bank of New Zealand (BNZ) has posted half-year net profits of $805 million - an increase of 13.5% or $96 million over the previous six months.
"This was driven by higher revenue," the bank said, "partially offset by higher operating expenses and higher credit impairment charges... BNZ is stable, well-capitalised, with strong liquidity".
Chief executive Dan Huggins acknowledged that many of its customers were struggling with the cost of living and rising prices.
"We know our customers well and understand that many New Zealand households are feeling the pressure of cost of living increases, particularly those with home loans. While we’re confident that our home loan customers are able to manage the current higher interest rate environment, for some, it will be challenging."
Home loan rates have surged as the Reserve Bank continues to lift the official cash rate, in a bid to bring down inflation. It sits at 6.7%.
The four big banks, BNZ, ASB, ANZ and Westpac, declared combined after-tax profits of an eye-watering $6 billion in the last financial year. All are Australian-owned.
Consumer NZ, alongside all political parties except Labour, have backed calls for a Commerce Commission inquiry into bank profits and competition.
Consumer NZ Chief Executive Jon Duffy said high profits and low innovation suggest limited choice for consumers, and the incumbent top four banks are in a really "comfortable position where they can keep ratcheting out the profits".
Huggins said in the past six months, the bank had removed or reduced some fees, saving customers $15m a year.
"This includes removing international payment fees and monthly account fees on BNZ’s popular TotalMoney account."
SHARE ME