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BNZ steady in Q3 despite challenges

Fuseworks Media
Fuseworks Media

Wellington, Aug 10 NZPA - The Bank of New Zealand held on to its market share in the third quarter despite ongoing intense competition, and continued reigning in poor quality assets amid weakness in the economy.

BNZ's parent, National Australia Bank, posted a 22 percent rise in cash earnings for the three months ended June 30, but also suffered from intense competition across the Tasman.

NAB did not release detailed results for its New Zealand business, but said BNZ's banking revenue rose during the quarter.

However, the poor outlook for the New Zealand economy resulted in relatively low demand for business and consumer credit.

BNZ's ratio of 90-plus days past due and impaired assets to gross loans and acceptances of 1.83 percent in June was steady compared with the previous quarter.

That compared with a group ratio of 1.91 percent, up from 1.86 percent, largely due to Australian business banking and NAB's United Kingdom banking operation.

BNZ's impaired assets have stabilised after increasing last year.

BNZ maintained market share in the quarter amid intense competition for customer deposits, with housing and business lending market share also stable. The bank increased its share of credit cards and agribusiness lending in the third quarter.

The bank accounts for about 17 percent of the New Zealand retail deposit market.

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