Which 4 NZ banks can be watched out for in 2022?

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Which 4 NZ banks can be watched out for in 2022?

 Which 4 NZ banks can be watched out for in 2022?
Image source: Worawee Meepian, Shutterstock.com


  • New Zealand banks have been very resilient despite COVID-19 disruptions.
  • Westpac reported strong growth in its cash earnings in FY21.
  • ANZ saw strong revenue and profits growth in FY21.

The banking sector is the mainstay of any country. NZ has 27 registered banks with 4 large Australian-owned banks responsible for 85% of the bank lending.

Let’s look at 4 banks to watch out for 2022.

Source: © 2022 Kalkine Media®

Australia and New Zealand Banking Group Limited (NZX:ANZ,ASX:ANZ) 

ANZ is the biggest bank in NZ. ANZ reflected a strong performance in FY21. Its main division, Australia retail and commercial business, grew in after-tax profit in FY21. ANZ’s home loan revenue rose more than 10%, while the total number of home loans declined in the second half of FY21. 
Also Read: Which are top 3 NZ banks to explore in 2022?
Related Read: Which are top 5 NZX dividend stocks to explore in 2022?

Of late, the Bank announced its plans to launch ANZ Plus in 2022. It also revealed its plans of strengthening digital platforms for home loans.

On 21 January, the stock was trading down by 0.40% at NZ$30.15, at the time of writing.

Also Read: 2 NZ banks that can be explored amid improving youth employment rate

Westpac Banking Corporation Limited (NZX:WBCASX:WBC)

WBC streamlined its businesses in 2021 by closing some branches and products. Despite that, it registered strong growth over last year. Recently, the company notified the New York Stock Exchange (NYSE) of its plans to delist its American depository shares. A Form 25 for this will be filed today with the Securities and Exchange Commission (SEC). The delisting is expected to happen within 10 calendar days and the trading will be suspended by 31 January 2022.

In FY21, the Bank almost doubled its profitability with cash earnings rising 105% to NZ$5.4 billion.

Also Read: Would 5 NZX stocks continue to give dividend payouts in 2022

On 21 January, the stock was trading down by 0.70% at NZ$22.40, at the time of writing.

Heartland Group Holdings Limited (NZX:HGH; ASX:HGH)

HGH is a services group with its reach in NZ and Australia. Its subsidiary, Heartland Bank Limited (HBL), provides banking services and has a diversified portfolio across geographies. In Australia, it provides reverse mortgage loans and funding to small businesses. In NZ, consumer lending reverses mortgage loans and motor vehicle lending.

The group as a whole reported an NPAT of NZ$87 million. It has also improved its finance receivables by 8% in the last year. Fitch also affirmed its Long-Term Issuer Default Rating (IDR) of the Group to be `BBB’, meaning a stable outlook for the coming period.

On 21 January, the stock was trading down by 2.39% at NZ$2.45, at the time of writing.

Related Read: Which are top 5 NZX dividend stocks to explore in 2022?

ASB Bank Limited

ASB is a bank operating in New Zealand but owned by the Commonwealth Bank of Australia. It provides a range of services, including retail, rural banking and business or corporate banking. It also deals in insurance through its subsidiary ASB Group Investments and ASB Securities division. It also operates its BankDirect service, which is a branchless service through phone, Internet and ATMs only. Recently, ASB dropped its two-year fixed loan rate by 0.2%.

Bottom Line

New Zealand has a strong banking system that performed relatively well despite the COVID-19 pandemic. Even though profitability dipped, the overall performance remained strong. This was largely due to mortgage growth and margin stability. Overall, lending showed a rising trend.


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