ANZ NZ profit flat

ANZ New Zealand's cash profit was flat in the first quarter from a year ago after a turnaround in bad loans overwhelmed the ongoing benefits of net interest income growth and tight cost control.

ANZ NZ reported a cash profit of NZ$415 million for the three months to December - down one per cent from the December quarter of 2013 after credit impairments of NZ$13 million were booked, a reversal of credit writebacks of NZ$19 million in the comparable quarter.

ANZ's net interest income grew four per cent and operating expenses grew three per cent. Profit from commercial lending grew five per cent, while retail profit fell two per cent.

ANZ said in its group trading update that the New Zealand division had performed strongly with balance sheet growth and a steady market share in mortgages.

"Ongoing benefits from the brand and systems merge continue to contribute to positive income expense jaws and the credit environment remains benign," it said.