Mortgages drive ANZ profits

ANZ New Zealand saw a 42% increase in after-tax profit in the six months to March, supported by a strong housing market and strong mortgage books.

Wednesday, May 5, 2021 10:35 AM

New Zealand’s largest bank’s net profit after tax increased to $ 692 million, up from 42% in the six months to March 2020.

Banks said the turnaround was driven by a “strong mortgage market” and a “significant” reduction in credit impairment costs.

The four major banks, including Westpac, have revised down their impact on Covid-19’s books and books announced in 2020. A stronger credit book than expected.

ANZ NZ mortgages increased $ 5.8 billion in half a year.

The Big Four banks said the housing market “did not meet expectations for six months due to historically low and deposit rates, reduced lending-to-valuation requirements, and supply constraints.”

Antonia Watson, CEO of ANZ New Zealand, said she has released 25% of the additional credit provided by banks since the pandemic broke out.

“There is optimism,” Watson said, but “we also know that the impact on the economy is non-uniform.”

“Sectors that depended on foreign visitors, such as education, hospitality and tourism, were being disproportionately affected and faced the challenges facing customers in these industries.

“Looking ahead, a full recovery is still a little further away. It will take some time for financial confidence to recover as we feel the effects of the pandemic residue.

“Banks play an important role in helping New Zealanders recover, and ANZNZ plays a role,” Watson added.

tag: ANZ Housing loan lending

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Mortgages drive ANZ profits

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