The profit is close to BNZ's 2015 record of $1.03 billion, and comes amid backdrop of increased regulatory scrutiny on the big banks.
BNZ CEO Angela Mentis says the bank, like others, is working with RBNZ, as the central bank reviews conduct and culture at the major lenders. A report is due this month.
Housing lending increased by 6.4% last year, the bank said, up to $39.8 billion. The market share of lending stayed flat however, at 15.7%, up from 15.6% the year before.
Total revenue at NAB's New Zealand division rose by 7% to $2.4 billion, with growth attributed to housing, business lending and deposits, and an improved net interest margin.
The lender stressed it was "listening to customers and working with regulators" on the culture review. The bank said it had made changes on fees to reflect the new environment: Mentis said: “As we simplify our products and fees we’re passing savings on to our customers. This year BNZ has removed or reduced a series of fees and we will continue to do so. This month for example we’re removing the replacement fee for the thousands of customers who lose or have their BNZ card stolen each year."
“Our customers’ trust in BNZ is well-founded and we will continue to take proactive steps to ensure that remains the case," Mentis added.
Mentis stressed BNZ would focus on customers, amid the looming regulatory scrutiny: "BNZ’s already making positive changes as we identify opportunities to improve the way we work and quickly fix issues where they are identified. We have already removed sales targets for staff in key customer roles in branches and call centres, so our people can focus on delivering better results for customers.”
“The continued success of BNZ is interwoven with our purpose of enabling a high achieving New Zealand and that means a dedication to consistently deliver the best possible outcomes for all of our customers,” Mentis added.
