Higher expenses and increased financial hedging have seen profits at the country's largest bank, ANZ, slip 7% for the year to the end of September.
Statutory net profit for the year after tax came in at just over $2.35 billion, while underlying cash profit was $2.30b, down around 3%.
ANZ New Zealand chief executive Ben Kelleher said the result came as the economy continued what's been a patchy and gradual recovery.
"While the economy is strengthening, it remains uneven. Kiwis have been through a tough few years and global volatility is adding to ongoing cost-of-living pressures for customers. But, for the most part, households and businesses are weathering the storm."
Lending at the bank was up 3%, while deposits grew 4%.
ANZ chief executive points out the bank already pays a billion dollars in tax. (Source: 1News)
Small business lending was up 9.1%, mirroring its rivals BNZ and Westpac, which also had business lending growth in the year.
The bank said agricultural lending also increased 2.8% to $15.8 billion, with ANZ NZ remaining New Zealand's largest agricultural lender.
It said agri deposits were up 15.4%, helped by high commodity prices and the Fonterra capital return.
Net interest margin – the difference between what the bank gets for lending and what it pays for deposits – fell 7 basis points to 2.52%.
The bank said expenses increased 9% during the year, including the impact of a provision relating to the Credit Contracts and Consumer Finance Act class action.
ANZ NZ said it had appealed the High Court decision granting summary judgment against the bank to the representative plaintiffs.
The morning's headlines in 90 seconds including a car crashes into an Auckland burger joint, and how an alligator ended up in a carpark. (Source: 1News)
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