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BNZ First-Quarter Profit $260 Million

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Feb 18 NZPA - Bank of New Zealand has reported a $260 million profit in the three months to December 31, up from $171m in the same period last year.

Net interest income of $385m is up from $337m in the same period last year.

But the big mover was a gain on financial instruments of $111m in the quarter from $28m in the same quarter last year.

A breakdown showed a $60m gain from trading foreign exchange derivatives. There was a loss on trading of interest rate derivatives.

A breakdown of the $369m operating profit before tax showed $215m came from BNZ Capital, the institutional part of the bank, and $137m from the retail arm of the bank.

The impairment charge is up at $35m from $12m in the same quarter last year.

The bank had a higher income tax expense of $109m from $87m last year and in the notes to the accounts the bank comments on a dispute with Inland Revenue relating to structured finance transactions. The bank is challenging the assessment and has independent advice that it complied with New Zealand law.

The bank is also defending a legal action from the Commerce Commission and a separate action from group of seven retailers relating to alleged breached of the Commerce Act in the setting of credit card interchange fees.

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