ANZ New Zealand (ANZ NZ) today reported a statutory net profit after tax (NPAT) of NZ$930 million for the six months to 31 March 2021.
Cash NPAT was NZ$962 million, up 42% from 31 March 2020, reflecting a strong home lending market and a significant reduction in credit impairment charges.
Expenses decreased 8% from 31 March 2020 due to lower personnel costs, a series of simplification initiatives and the divestment of UDC in September 2020. Both customer deposits and gross lending were up, 1.6% and 3.5% respectively, from 30 September 2020.
As at 31 March 2021, the ANZ Bank New Zealand Limited group remains well capitalised with a RBNZ total capital ratio of 15.9%, up from 14.4% as at 30 September 2020.
ANZ NZ Chief Executive Officer Antonia Watson said that while the full impact of Covid-19 on the New Zealand economy had yet to play out, sectors such as housing, construction and agriculture had proven resilient during the crisis.
“Across the economy, businesses have generally fared better than we expected so we’ve been able to release around 25% of the additional credit provisions we had put in place since the start of the pandemic,” Ms Watson said.
“While there’s room for optimism, we also know the impact on the economy is uneven.
“Sectors that relied on overseas visitors, such as education, hospitality and tourism, have been disproportionately affected and we’ve seen first-hand the challenges facing our customers in those industries.
“As we look ahead, a full recovery is still some way off. Economic confidence will take time to be restored as residual impacts of the pandemic are felt.
“Banks have an important role in helping New Zealanders through the recovery, and ANZ NZ is playing its part.”
ANZ NZ has been working closely with the Government and regulators to help business and retail customers manage their cash-flows and borrowings during the pandemic.