Weaker economy weights on BNZ’s profitability, which remains high at $1.5 billion

BNZ is reporting a net profit of $1.51 billion in the year to September – a result broadly the same as the previous year. While the bank grew its deposit and lending books, the amount of interest it received relative to the amount it paid fell to a more normal level.

BNZ’s net interest margin fell to 2.35% from a very strong 2.4% in 2022/23.



Speaking to the Herald , BNZ chief executive Dan Huggins said the drop was normal in a falling interest rate environment. Looking ahead, he said there was a limit to the amount banks could cut their deposit rates in a competitive environment to keep attracting the funding required..