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Chief executive Vittoria Shortt said the result was a reflection of the broad economy and the financial pressures its customers were under. Photo: Supplied ASB Bank's full-year profit has fallen as a weak economy and housing market hit its lending and margins. Key numbers for the year ended June compared with a year ago: Net profit $1.45b vs $1.56b Cash profit $1.36b vs $1.51b (excludes one-offs) Total income $3.39b vs $3.49b Provisions $70m vs $64m Net interest margin 2.23% vs 2.39% The bank's run of record annual profits ended with a 10 percent fall in its cash profit as borrowing demand slowed, and it paid higher interest rates for deposits which squeezed its margins. Chief executive Vittoria Shortt said the result was a reflection of the broad economy and the financial pressures i...

The fund will help SolarZero install more household solar energy systems. Photo: Supplied The state-owned Green Investment Fund has raised $365m in capital from overseas private investors to fund solar power for New Zealand homes. It was working with SolarZero, a provider of more than 15,000 household solar energy systems, to finance the installation of more systems. Offshore investors, First Sentier Investors, Natixis Investment Managers and Societe Generale, have bought in to what the fund is calling a "pool of solar assets". Read more: NZGIF chief investment officer Jason Patrick said it was a unique offering that had proven to be attractive to foreign lenders. "What we're issuing debt off of is a pool of installed solar assets on more than 10,000 Kiwi homes and having a pool of ass...

Photo: 123RF Master Builders say the industry is being held back by the ability to get finance for housing and major infrastructure developments like schools and hospitals. A survey of more than 1000 homeowners and 300 builders ranked difficult financing as the number one issue, followed closely by weak consumer demand and the rising costs of construction. Master Builders chief executive Ankit Sharma said the current economic conditions had resulted in a slowdown. He said the highly conservative approach taken by the banking sector is a major barrier to the development of much needed housing and critical infrastructure. "We need businesses and clients to have the confidence that they can access money for projects, because it sends the signal that the economy is going to recover, and that...

Photo: RNZ The Reserve Bank will announce the Official Cash Rate at 2pm on Wednesday. The current rate is 5.5 percent. The Reserve Bank had previously indicated it wasn't likely to drop until 2025. But business leaders and economists now think it's likely they'll move sooner as inflation slows and unemployment rises. Most banks have been pre-empting lower rates with drops in their lending rates already. Expectations are building that the Reserve Bank will cut the official cash rate on Wednesday for the first time in more than four years. Wholesale interest rates have been falling in recent weeks as financial markets expect the first cut to the official cash rate since March 2020. The Reserve Bank started increasing the cash rate in late 2021 in response to high inflation, with the OCR ...

Photo: RNZ Board of Airline Representatives says rising visa fees could hurt New Zealand's tourism recovery. Visa fees will increase on 1 October. Ministry of Business, Innovation and Employment says the new rates won't significantly impact demand. BARNZ criticised MBIE for not consulting airlines, which they say hold crucial tourism data. Rising visa fees could cement a decline in tourism too hard to bounce back from, the Board of Airline Representatives says. Higher visa fees are set to take effect from 1 October - a move Immigration Minister Erica Stanford said would free up more than $563 million over four years. A visitor visa would increase from $211 to $341, while the working holiday scheme would rise from $420 to $670. Official documents showed that in March the Ministry of Bus...

One third of construction contractors expect to see revenue growth this year, compared with 47 percent in 2023. File photo. Photo: 123rf.com The construction industry is losing confidence, amid rising concern about the lack of a clear pipeline of government work in the immediate future. The 2024 Construction Industry Survey - commissioned by Civil Contractors - found just one in five contractors have confidence in the outlook, which compared with a third last year. A third expected to see revenue growth this year, compared with 47 percent in 2023, 52 percent in 2022 and 55 percent in 2021. Civil Contractors chief executive Alan Pollard said the industry was facing a severe lack of work, which was affecting 64 percent of businesses, compared with 29 percent in 2023. "There has to be chan...