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The record growth in bank profits ended with lower bad debt and operating costs and squeezed margins.
Creative Commons / Pixabay / 3dman_eu
KPMG's survey of financial institutions shows that net profit of banks in the country fell by 11.3% or 1.2 billion in the third quarter closed in March
. He said that the way banks calculated bad debts increased costs, while loan growth slowed.
"We had very low levels. These things tend to be cyclical and this could be the beginning of a comeback … I do not think we'll see them go down, "said Kensington
.Damounting costs more than doubled During the quarter, reflecting the changes in the accounting rules that require banks to account for expected losses rather than actual losses.
Kensington said the decline in earnings and higher bad debts would be monitored given increasing global uncertainty and volatility.The report indicates that overall loan growth has slowed to just over 1%, with TSB Bank recording the strongest growth. a key measure of profit, were flat or weaker for the most part, while their cost of doing business was higher.
Mr. Kensington said that the banks would also feel their business. business behavior and practices banking and financial services and inquiries from the New Zealand Financial Markets Authority and the Reserve Bank.
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