A rise in tax paid profit has been reported by Westpac New Zealand which stands at $322 million. This is 36 per cent higher than last year which has happened because of the huge reduction of impaired loans.
Looking at the result, the bank said that this is a pleasing turnaround after the long period of economic slowdown.
Rise in loans as well as deposits, which is higher than the market growth, as well as impairment charges coming down by 39 per cent to be at $347 million are the major reasons behind this level.
But what added to the woes were the higher customer fees as well as rising funding costs and expenses which are associated with the Canteburry earthquake are responsible for whatever decline has happened. This is the reason why the core earning reduced by $97 million.
Net income have gone up by 3 per cent to end at $1.2 billion while the growth in loans offset margins have reduced by 13 basis points to be at 2.16 per cent for the whole half year.
Total deposits have grown from $1.7 billion to $30.5 billion.