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Source: Reuters -
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Westpac New Zealand's cash earnings slid 15% to $202 million in its first half result.
In the six months to March 31, the bank's cash earnings were down from $239 million in March 2008 and $234 million for the six months to September 2008.
The bank said the decline was due to increased impairment charges - now at $184 million from $123 million - and continued deterioration in the New Zealand economy.
However, without including for impairments - such as provisions for bad loans - and tax, earnings increased by 13% to $471 million.
Westpac New Zealand's CEO George Frazis described the results as "sound" given the "unprecedented set of external circumstances" in the global economy.
The bank said it had seen increased growth in its business, with business lending growing 9%, mainly to agriculture, infrastructure and small-medium enterprises.
"We have provided an additional $350 million over the last six months to help small businesses invest, grow and protect jobs," says Frazis.
House lending grew 3% and deposits increased 6%.
However, the banks says there are few signs that wholesale funding costs are easing from their current high levels.
It also says the cost for retail deposits is increasing.
"While it appears some of the severe stresses of the financial crisis have now stabilised, the more dominant impact on Westpac New Zealand will be the size and duration of the recession," the bank said.
