EVs rate in Westpac NZ’s full-year performance

Westpac New Zealand has delivered a balanced financial result in the year to September 30, its latest report also noting a 30% target for switching its fleet to EVs has been reached.

Core earnings for the year fell 1% on the same period last year, amid strong competition and increased investment in technology, risk and compliance systems.

However, a continued low level of impairments and the sale of Paymark supported a rise in cash earnings.

Westpac NZ chief executive David McLean says low interest rates are providing opportunities for first home buyers and others looking to move into the property market.

“We’ve never seen interest rates this low in New Zealand. It helps with housing affordability and business investment, and presents a great opportunity for existing borrowers to pay down debt,” he says.

However, low rates also meant savers, many of whom rely on deposit interest to supplement their retirement income, saw their returns reduced.

Business conditions had deteriorated in the second half of the reporting period based largely on uncertainty about the outlook into next year, McLean says.

“Although significant risks exist globally, the local economy remains in reasonable health, our business is fundamentally sound and our balance sheet continues to be well managed.”

Westpac NZ reports cash earnings of $1.042m, up 3%; core earnings of $1.422m, down 1%; net operating income of $2.415m, up 2%; operating expenses of $993m, up 7%; net Impairment benefit of $10m, compared with impairment charge of $25m in the prior comparative period; net interest margin 2.16%, down eight basis points; and notable items of $24m after tax, up from $13m.

Home loans and business lending have grown 5%, while customer deposits have grown 4%.

Westpac NZ paid $476 million in tax, $523m in salaries and wages to staff and contractors, $597m to suppliers and $9m in sponsorships and contributions to the community.