BNZ profit takes hit on one-off accounting adjustment
· RNZA one-off adjustment related to how it accounts for software spending has seen BNZ post a 38 percent drop in profit for the half year to March, to $494m.
Underlying earnings, however, excluding the one-off adjustment, were down just $48m to $747m.
The company said revenue for the half year was broadly flat, up 0.7 percent to $1.76 billion, while operating expenses excluding the one-off adjustment rose 4.3 percent to $701m.
Key numbers for the six months ended March 2026 compared with a year ago:
- Net profit $494m vs $795m
- Underlying earnings down $48m to $747m
- Revenue $1.76m vs $1.75m
- Credit impairment provisions hardly charged at $995m
- Net Interest margin 2.36% vs 2.40%
- Total lending up 4.7% to $113.6b (from $108.5b)
BNZ chief executive Dan Huggins said the result largely reflected the New Zealand economy prior to the Middle East conflict.
"The first half of the year saw many New Zealand businesses anticipating a steady return to economic growth. We saw both housing and business lending increase as household and business confidence improved," Huggins said.
The bank reported home lending was up 6.6 percent and business lending up 2.2 percent on the prior period, while total lending rose $5.1 billion, or 4.7 percent, to $113.6b.
However, Huggins said "while it was pleasing to see a return to confidence in the New Zealand economy, the Middle East conflict has eroded that positive sentiment and customers have once again had to adjust quickly."
BNZ's net interest margin fell 4 basis points, with the bank citing strong competition for customers.
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