Westpac takes $40m earthquake hit

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Westpac New Zealand says first-half year cash earnings surged 68 per cent from the same period of last year despite a $40 million hit from the February 22 Christchurch earthquake.

The bank said cash earnings for the six months to March 31 rose to $210 million from NZ$125 million in the same period of the previous year due to a $71 million reduction in impairment charges and $50 million lift in core earnings.

Westpac said the higher profit came despite costs associated with the earthquake impacting cash earnings by about $40 million during the first-half.

These costs included direct financial support to the Christchurch releif effort, and higher impairment charges of $56 million.

Mortgage lending rose $300 million from September 30 last year to March 31 this year to $34.2 billion, with business lending down by $300 million to $14.3 billion leaving net lending flat at $49.8 billion.

Total assets rose slightly, to $51.3 billion from $51.2 billion.

- INTEREST.CO.NZ