NZ's largest bank posts $1.1b half-year profit

ANZ bank - New Zealand's biggest - has posted a half-year net profit after tax of $1.1 billion.

That's up around 14% on the same six-month period a year ago, when it posted a $968 million profit in the half-year to March 2022, and comes the day after the Bank of New Zealand posted half-year net profits of $805 million - an increase of 13.5% or $96 million over the previous six months.

ANZ's profit was up 1% on the previous six months to the end of September.

"It needs to be put into the context of the size of our business and the role banks like ANZ NZ play in supporting economic activity in New Zealand, particularly during periods of uncertainty," chief executive Antonia Watson said.

"The actual profitability of ANZ NZ, which measures our returns versus the amount of capital committed by shareholders, is middle of the pack when compared to large companies listed on the New Zealand stock exchange."

The bank's statutory net profit after tax, which includes gains and losses from economic hedges, decreased 17% to just over $1b.

Watson said the economic forecast was uncertain.

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Major NZ bank sees 13.5% profit lift

Chief executive Dan Huggins acknowledged that many of its customers were struggling with rising prices, including higher mortgage rates.

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"The New Zealand economy has remained remarkably resilient, however the impact of a softening housing market, stubbornly high inflation and the impact of a rising official cash rate is starting to have a material impact on businesses and households,” she said.

“While a rising interest rate environment contributed to the result, this was offset by intense competition in home lending, which we expect to remain a feature of the market for some time into the future.”