Higher expenses and a squeeze on its margins has seen the profit of ANZ New Zealand take a dive in the first half of its financial year.
The country’s largest bank reported a net profit after tax of $789 million for the six months to March 31, down 15 per cent from $929m in the six months to March 31, 2019.
ANZ New Zealand’s cash profit fell even further dropping 39 per cent to $677 million as it significantly increased its credit provision charges.
It took a $232m credit impairment charge, up from $32m, to reflect the increasing risk from Covid-19.
The cash profit drop was also magnified as the prior corresponding period included gains from the sale of OnePath Life and its share in Paymark.
Antonia Watson, ANZ New Zealand chief executive, said New Zealand’s response to Covid-19 had resulted in extraordinary changes to the economy, the fortunes of businesses and the lives of customers.
“While the Covid-19 crisis only began in earnest in New Zealand at the end of March…