New Zealand's biggest bank ANZ has reported a half-year net cash profit of $1,155 million, exactly the same amount as the previous half year.
Once the bank included its gains and losses from economic hedges, its statutory Net Profit After Tax (NPAT) was down 8 percent. Economic hedges are used to reduce financial risk.
ANZ Bank NZ CEO Antonia Watson said banks reflect the economies they operate in, and New Zealand had entered a more challenging period.
"In the second half of last year our performance slowed and we’re now seeing the impact of stubbornly high inflation, an official cash rate on hold at a restrictive level, rising unemployment, and the flow on effect into business and consumer confidence."
Watson said those pressures are likely to continue through the rest of the year with unemployment expected to rise further.
Figures from Stats NZ last week showed unemployment had risen from 4 to 4.3 percent. The Reserve Bank expects it to rise to about 5 percent by the end of the year.
ANZ also said despite a subdued housing market, ANZ grew its home loan market share, lending $10.1 billion in new home lending.
Most ANZ customers have now moved onto higher loan rates with 17 percent on rates lower than 5 percent.
The amount set aside for potential bad debts has increased to $870 million.
ANZ employs around 8000 New Zealanders, with its tax payments representing around 5 percent of the Government's total company tax revenue.
