The New Zealand unit of the Australian banking group lifted its first-half cash earnings 7 per cent to $370 million in the six months ended March 31, with increased home and agriculture lending volumes, and a reduction in the charges it faces for bad loans. The New Zealand unit contributed about 9 per cent of the Australian group's A$3.3 billion first-half profit.
"This was a solid result in a competitive environment," Clare said.
Since rival Australian & New Zealand Banking Group ditched its National Bank brand last year, the race to grab the dead brand's customers has died down, competition was still "robust," he said.
Westpac New Zealand grew total lending 3 per cent to $59.9 billion from a year earlier, with 3 per cent growth in mortgages to $36.4 billion, the Sydney-based lender said in a statement. Of that, some $34 billion has an LVR of less than 80 per cent.
The Westpac unit also lifted business lending 3 per cent to $21.7 billion, and recorded 8 per cent growth in agri loans, "comfortably ahead of system growth."
The bank now has about 13 per cent of the country's agri-lending market share, and Clare said Westpac wants to continue raising its exposure in that sector where it's under-represented.
The Australian group's dual-listed shares rose 0.2 per cent to $41 on the NZX and A$33.96 on the ASX.