Westpac New Zealand has reported a $963 million net profit for the 12-month period ending September 30, 2023, however saw its earnings drop in comparison to 2022.
The bank saw an 18% fall in its earnings compared to last year, or a 7% drop when excluding "notable items", such as the sale of Westpac Life in the 2022 financial year.
Westpac NZ chief executive Catherine McGrath said the bank has "invested heavily in helping customers through difficult times and strengthening its core business", and has "positive momentum" heading into the next 12 months.
The country was heading into a "difficult phase" of the economic cycle but the country was well positioned.
“Last week our economists released their Quarterly Economic Overview showing subdued growth likely throughout 2024, with uncertainty over higher long-term interest rates and weakness in our key trading partners, most notably China,” McGrath said.
“However, there are causes for optimism as well. Unemployment remains low, wage growth fairly high and tourism numbers continue to recover. In addition, strong net migration is adding to our labour force and boosting demand, including in the housing market."
McGrath noted a number of changes the bank has made in the past year, including new loans focused on EVs and sustainable farming, as well as a partnership with Biocatch, a cybersecurity company, to combat the rise in online scams.
Westpac NZ's operating expenses were notably higher on last year, its operating expenses coming in at $1.29 billion, up 12% on 2022, or up 11% excluding notable items.
The banks's net interest margin is set at 2.11%, up 11 basis points excluding notable items, on 2022.
Home lending saw a slight uptick of 3% to $65.8 billion, while business lending was up 2% to $32.8 billion.
The bank also saw a small increase in deposits, which climbed 2% on last year to $79.8 billion.
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