ANZ New Zealand result: First-half profit edges up to $1.16 billion
The bank's New Zealand chief executive, Antonia Watson, said the result came at a time of global uncertainty and market turmoil.
'Our performance reflects the broader economy we operate in,' Watson said.
'With revenue and costs largely flat, our half-year result demonstrates consistent performance,' she said.
'Many Kiwis are starting to feel the benefits of a lower-inflation and interest-rate environment and our farmers are seeing strong commodity prices.
'However, global uncertainty is likely to keep firms cautious about taking risks for a bit longer, slowing the recovery in investment and employment.'
ANZ's economists have revised down their forecasts for both activity and the Official Cash Rate, which stands at 3.5%.
'Kiwis are very aware of what is going on in the economy and we are seeing this play out through our customers' behaviour,' Watson said.
Almost 40% of ANZ's home loan customers were ahead on their payments by six months or more and 45% have a savings buffer of $5,000 or more in place.
Over the past three months, just under a quarter of all home loan customers refixing at a lower rate have either kept their repayment amounts the same or increased them, which means they will now be paying off their home loans faster than before, the bank said.
ANZ said cautious consumer spending was impacting on some sectors like retail and hospitality.
Watson said many business and agricultural-sector customers were reluctant to take on more debt in the current environment.
'While there are still challenges ahead, we're seeing encouraging signs that New Zealand's economy has some firm foundations and there are green shoots,' Watson said.
'It's important to note that while it is now looking like it will take a little longer, the New Zealand economy is forecast to continue to improve as the impacts of interest rate cuts work their way through.'
Advertise with NZME.
Since last August, the Reserve Bank has cut the Official Cash Rate by 200 basis points and fixed home loan rates have fallen even more, providing some relief for home loan customers.
By the end of this year, around 86% of ANZ's customers with a fixed interest rate higher than 6% will roll off on to lower rates.
These borrowers could potentially see 100 basis points or more coming off their home loans when they refix, Watson said.
For someone with a $500,000 loan, this could mean monthly savings of around $260 in repayments.
The bank's revenue for the first half of the year was $2.541b, up 1% on the six months to September 30, 2024.
Expenses dropped by 1%, inclusive of higher wages and operational costs.
Watson said the Reserve Bank's capital rules equated to an increase in minimum regulatory capital required of $5.4b by July 1 this year.
Beyond that, as the Reserve Bank has announced the incoming requirements will be reassessed, any further increases are unknown, she said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
a day ago
- NZ Herald
Refixing the mortgage? Should you float or fix – and for how long?
Last week's Official Cash Rate (OCR) cut sparked another cycle of banks dropping mortgage rates. But for homeowners due to refix soon, is now a good time to grab those fixed rates? Cameron Marcroft, senior adviser and director at Loan Market, told the Herald it felt like we were nearing
Otago Daily Times
a day ago
- Otago Daily Times
To infinity and beyond with a possum and sweet chilli sauce
One of the things MPs like most about the Budget debate — the freewheeling discussion of the Finance Minister's hard work — is that it enables them to speak about almost anything so long as it can (sometimes very loosely) be linked back to the Budget. Hence this week our southern MPs have been talking about possums, utes, outer space, Barker's sweet chilli sauce ... and every so often about something of vital importance. On Tuesday Taieri Labour MP Ingrid Leary fell into the latter camp with an impassioned speech about the state of the nation's mental health system. "The Budget would have been the perfect opportunity to [workforce gaps], including the 1594 full-time equivalents that the NCAT — which is the National Committee for Addiction Treatment—has identified as missing from the NGO frontline," Ms Leary said. "But no, they did not. Instead, they threw a paltry bit of money to help the transition at emergency departments for the withdrawal of police. That was far too little, far too late." It was Ms Leary's Labour Dunedin colleague Rachel Brooking who brought possums and utes to the debate soon after — which was fairly funny, albeit with a serious purpose. The Budget had been good for possums, Ms Brooking said, because of cuts to pest management initiatives. And it had been good for utes because of subsidies being afforded to companies. But most of all, Ms Brooking said scornfully, the Budget had been bad for women. "Anyone listening closely to the House when the Budget dropped will have heard me give an audible gasp when I read ... that $12 billion was looking to be saved from pay equity. "Yet the Prime Minister had the gall to say to us just the week before, 'No, no, no. This has nothing to do with pay equity'. It is astounding." And she did not mean that in a good way. Up soon after, Taieri Green list MP Scott Willis warmed up on the topic of people feeling the cold as winter bit hard — although he might have sparked debate on his own side by talking about getting nice and cosy in front of a fire rather than being warmed up by an electric fire powered by solar or wind energy. "What really would have helped people and helped landlords, even, would have been support for warm, dry, energy-efficient homes," Mr Willis said. "But this government, over the last two Budgets, has cut over $230m from the Energy Efficiency and Conservation Authority ... crippling the Energy Efficiency and Conservation Authority. Why has this government decided that ordinary Kiwis should be left out in the cold?" The next day the South's government MPs got to give an alternative, all together more enthusiastic appraisal of the Budget. Rather than wreaking havoc on all and sundry, Southland National MP Joseph Mooney extolled it for "balancing the New Zealand taxpayers' funds in a very considered and careful way in a challenging domestic and geopolitical environment." Funding such as new daytime urgent care services in places like Invercargill, Gore, and Alexandra found favour with Mr Mooney, as did the potential expansion of the service to Balclutha, Lumsden, Roxburgh and all places in between in the future. It was Mr Mooney who donned his space suit, noting Southlander Sir Peter Beck had made New Zealand the third-largest launcher of satellites into infinity and beyond. "He had a wild dream and made it happen in a country that did not have a space sector. I think that's an opportunity for all of us to lift our sights high, aim for the stars, and we can make it happen," he said, leaving unspoken but fairly obvious the assertion that the government was helping such firms to focus on the target. Leaving Waitaki MP Miles Anderson — no doubt well aware that many residents in Geraldine would like their town to instead be in the Rangitata electorate — to praise the fine products of Barker's of Geraldine. "I spoke this morning to the team at Barker's of Geraldine — and those of you who have had the opportunity to try some of their goods, I highly recommend them." "Great little place. Sweet chilli sauce," Otaki MP Tim Costley chimed in, a sentiment echoed from across the House. "They supply jams, preserves, and pickles to supermarkets across the country," Mr Anderson added, in his best infomercial manner. There was actually a point to all this spruiking: Mr Anderson wanted to use his time to boast about Investment Boost, the Budget's central policy for business growth. Enabling firms to immediately write off some of the cost of new equipment was a boon for an expanding business like Barker's, he said ... and that was not all for the great electorate of Waitaki. "Other local businesses are also having an increase in asset investment," Mr Anderson said. "Te Pari Industries tell me that they have seen an increase in interest for their products, and that farmers are making decisions much more quickly with both sheep and dairy systems. Drummond & Etheridge in Oamaru, local farm machinery retailers, saw an immediate increase in sales and a significant increase in buyer inquiry." And with a shout out to Five Forks School — pupils from which had visited the House the previous day and been acknowledged from the chamber — that was it for the Budget debate for another year. Half time, change sides Act New Zealand Southland list MP Todd Stephenson is poised to become the most recognisable backbencher in the country following the grand rearrangement of the House this week. With the coalition swapping deputy prime ministers, New Zealand First's MPs have moved to where Act once sat, and vice versa. As Act's whip, Mr Stephenson is now sitting in the second row alongside National chief whip Stuart Smith. That means that during Question Time — the only bit of Parliament that most New Zealanders catch a glimpse of — that Mr Stephenson is sitting right behind Christopher Luxon and David Seymour when the cameras roll.
NZ Herald
a day ago
- NZ Herald
SMEG returns to New World
New World is serving up kitchen style with its latest promotion. This article was prepared by New World and is being published by the New Zealand Herald as advertorial. New World is once again serving up a big dollop of kitchen style with its latest promotion. For the past six years, these eagerly awaited campaigns have been elevating kitchens across the country. This year, New World has once again, partnered with premium brand SMEG to offer a kitchenware collection that combines luxury with everyday functionality. The promotion launches June 9 and runs until August 31, or while stocks last. New World's retail marketing manager Sarah Austin says the SMEG kitchenware range was chosen for its premium quality and useability. As with previous promotions, the range is expected to be hugely popular. 'Our promotions are all about giving customers the chance to add a little bit of wonderful to their weekly shop,' she says. 'We know New Zealanders are familiar with and love the SMEG brand, but treating themselves to quality kitchenware isn't often a priority. This promotion gives New World shoppers the chance to elevate their kitchen space with a touch of luxury and can collect stickers just by doing their usual shop.' The SMEG range is finished in high gloss while the brasier is cast iron, making it ideal for low-and-slow cooking and safe for both the stovetop and oven. The range has been chosen so customers can choose the items they like, without needing to collect the whole set, with one sticker collected for every $20 spent in store and online**. Items can be collected by redeeming between 20 stickers for the utensil rest to 55 stickers for the larger baker. Shoppers can also use a combination of stickers and cash to collect items. The cast iron braiser is a Clubcard exclusive and only available with 45 stickers and a cash top-up. Value is top of mind this year and New World's fresh and improved Clubcard programme offers a truly rewarding shopping experience with our own New World Dollars – a currency that turns everyday shopping into real value. With no minimum spend, customers earn every time they shop and can redeem New World Dollars like cash in-store or online. Combined with exclusive Clubcard deals, prize opportunities, and exciting campaigns like SMEG, it's easier than ever for Kiwis to get more from their grocery shop – all backed by our enhanced app for a seamless, personalised experience and rewards for every dollar you spend. Throughout the SMEG promotion New World teams across Aotearoa will be helping customers to keep track of what stock is available and what's running out. 'We anticipate the promotion is going to be super popular, and it's important to remember it's only while stocks last,' says Sarah. 'Some items will be more sought after than others, so customers should redeem their stickers as soon as they have enough for their chosen pieces, or they may lose out.' You can keep an eye on your local New World's Facebook page for updates on stock availability and take note of the in-store signage about what's available and what might be running low. As we always say, if you really want a particular item, don't sit on your stickers, they are strictly while stocks last.
